Many people facing debt challenges fall victim to debt negotiation or credit counseling agencies that end up making their debt situation worse. Most of these companies habitually violate the law and you may be able to make them pay you if you suffered damages.
At Shrader Law, PLLC, our attorneys understand the tricks used by debt negotiation and credit counseling firms and agencies. Most people fall prey to debt negotiation and credit counseling agencies due to their convincing commercials on local media and dailies. The commercials portray the companies as a solution to a debt crisis.
Debt negotiation firms claim that you can negotiate to have your unsecured debt paid between 10% and 50% of the total outstanding balance. They also claim that their services are a convenient alternative to filing for bankruptcy. In most cases, they will advise you to stop making direct payments to your creditors and instead start making payments to them.
Debt negotiation firms will assure you that using their services will not have an adverse effect on your ability to obtain credit in the future. They could also mislead you to believe that once you complete the debt negotiation program, all negative information will be removed from your credit report.
To avoid falling prey to debt negotiation and credit counseling firms, you need to understand some truths about them:
If you ever decide to work with a debt negotiation company, you should first consult with your attorney. Our Tampa consumer protection attorneys at Shrader Law, PLLC, can instantly identify a fraudulent debt negotiator. Some of the warning signs that could help you identify a scam are:
The majority of Florida debt negotiation companies are not genuine but out to make profits by taking advantage of unsuspecting debtors. A consumer protection attorney will help you determine if debt negotiation is the way to go. If you are considering debt negotiation or if you have fallen victim to a debt negotiation company, contact an experienced consumer protection attorney at Shrader Law, PLLC as soon as possible.