July 21,2009
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Debt Settlement, Pt.1
On Shaky Ground.Credit card debt settlement companies have come under fire lately. Better Business Bureaus and Attorney General Offices across the nation have received massive amounts of complaints from consumers telling how they have been scammed and taken for hundreds even thousands of dollars by this unscrupulous group of money grabbing thieves. Several have been slapped with law suits and are waiting for a hearing to determine the outcome of charges. Others have already felt the wrath of authorities and have been put out of business. Still, many more remain that continue to prey on the helpless victims who are already buried in huge credit card debt. These predators have given the credit card debt industry a very bad name. Many consumers, who need the assistance of an honest and fair agency to help them resolve debt issues, don't know where to turn.
Debt settlement companies assist credit card consumers by negotiating with creditors in an attempt to reduce the amount owned. However, quality agencies go beyond this by helping the consumer to devise a workable budget and savings plan. They provide financial education and teach clients the required skills to help them make prudent financial decisions and manage credit cards wisely. The goal of any debt settlement agency should be to help clients get out from under debt and prepare for a healthy financial future.
Unbeknown to most consumers is that most major credit card companies stipulate in the terms and conditions of the card contract that arbitration is a mandatory provision in settling debt disputes. Lenders much prefer arbitration over the costly alternative of court proceedings. With this being the case, consumers and lenders alike are vulnerable to the deceptive practices of many arbitration companies. All of this makes it very difficult for a consumer to choose the right agency. Read on to part 2 to learn what measures you can take in making the right choice.