Debt relief scams ranked right up there on the Federal Trade Commission‘s (FTC) top 10 frauds list. It’s estimated that 1.5 million Americans were victims of someone trying to sell a quick fix for credit problems.
Stay ahead of the scammers
Susan Shinn, an attorney with Neighborhood Economic Development Advocacy Project (NEDAP) warns against using debt settlement companies or others who promise to help you “repair” your debt or credit.
Debt settlement companies, like credit repair companies, are scams. Debt settlement companies promise they’ll get you out of debt by negotiating discounted settlements with your creditors. Credit repair companies promise that they are going to improve your credit but they often charge you hefty fees to do that. Instead of paying these scam companies, you’ll be much better off if you work with creditors directly, pursue credit disputes on your own, and work with non-profit consumer counseling services or other free financial counseling services.
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