subject: Debt Settlement Scams Lead To Crimes Of Persuasion [print this page] There are certain indications which make people realize as to whether a company can really be of any help or is just trying to take out money from the customers pocket. If people are aware and puts up effort to first compare and contrast as well as get proper information it would prove to lessen the risk of being taken advantage by a scam debt settlement company.
Some of the debt settlement companies tell their customers that their collection agencies had created a false credit agreement. Even if the mistake in the agreement is small or minute it happens to show something enormous, which would not invalidate the purchases that had been changed on the account totally.
A debt settlement company may offer to contact the creditor on behalf of the consumer to discharge their debts, but when things are checked out, they might land up in trouble due to finance charges and late fees as there is always a possibility that the debtor fails to make a payment on time. It is possible that the person may be sued by the creditor for the balance on the account.
Some debt settlement companies may offer to eliminate the total debt amount by creating an absolute new social security number (SSN), which is fake and illegal. Once created, it is linked with the consumers credit profile which otherwise would put charges of fraud on the identity of the consumer or possibly put him behind the bars.
There can be a lot of companies who take care of settlements, but there are only a few that might not lead to complication in the future. The best solution is to do some research on the company that one thinks would prove reliable in resolving the cases without any trouble in the future.
It is always wise to avoid any of the debt settlement scam companies if suspected, and look for cheaper company without any extra terms and conditions. If the customers feel that there is a need for complaint, they can contact FTC in the consumer complaint division. Although it seems to be tempting, it is not worth dealing with the scam company as it is sure that you would be ripped off, and all the information that has been provided for private registration would be made public.
