Debt Relief Services – Never Share Your Banking Secrets With Your Relief Company

Debt Relief Services Never Share Your Banking Secrets With Your Relief Company

In the recent times of recession the only industry to flourish in the financial sector was the debt settlement industry. This is because the stimulus money program of the Obama government made debt settlement popular with both the debtors as well as the creditors. The creditors also realised that if debtors were harassed to pay money which they did not have, their only option would be to file for bankruptcy. In this situation the creditors dealing in unsecured loans would lose all their money. Hence they chose to pass on this benefit to the debtors.

Seeing easy money to be made in this industry, many frauds and shams set up shop. They started making tall promises and charging huge up front fees. After a while these con men just dissappeared and the debtors not having read the fine print of the contract were left in a quandry. Looking at many such instances, the federal government passed a law stating that a debt settlement company could not charge an up front fee from the debtors. They could demand a fee only once the settlement procedure was complete and the creditors had given the full and final settlement letter to the debtor. Even this amount could not be more than 13% of the amount that the debt settlement company had saved for the debtor through the process of settlement.

This made it very difficult for the fraudulent settlement companies to function. However many resilient con men found a way to get around even this situation. Usually during a debt settlement procedure a debtor sets up and account into which he or she makes monthly payments. When there is enough money in this account, the creditors are paid off a lump sum. The shamsters take the details of this account from the debtors and skim money systematically from this account. It is usually too late by the time a debtor realises what has happened. This is the reason you should never share your banking secrets with your debt settlement company. In fact your bank details are a secret you should guard most dearly and not share them with anyone.

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