Consumer lawyers and collection lawyers agree about as often as Bill O’Reilly and Keith Olbermann. But one thing they do agree on is the dubious value of most for-profit companies that promise to get consumers out of debt.
They go by many different names: credit counseling agencies, debt settlement companies, debt negotiators, etc. They usually charge a hefty up-front fee and require monthly payments. Their ads offer to get you out of debt for pennies on the dollar through “secret programs” that the credit card companies don’t want you to know about.
But take it from someone who used to collect debts for credit card companies, there are no secret programs. And even though the credit counseling agencies promise to settle your debt for pennies on the dollar, remember that it takes two parties to settle a debt, the consumer and the creditor. And creditors rarely settle debts for pennies on the dollar.
So what can a credit counseling agency actually do for you? Nothing you can’t do yourself for free. With a little preparation and planning, you are more than capable of negotiating with your creditors. But if the thought of speaking with debt collectors is too overwhelming, there are many reputable non-profit organizations that will work with your creditors for no charge. Of course, if you don’t believe you owe what the collector wants you to pay, request validation of the debt before paying anything. And if the collector is abusive or harasses you, talk to a consumer lawyer.
(photo: boeke)
If you are in Minnesota, contact The Glover Law Firm, LLC, for a free case evaluation. In any other state, you can find a consumer rights lawyer using the National Association of Consumer Advocates lawyer database.
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“Their ads offer to get you out of debt for pennies on the dollar through “secret programs” that the credit card companies don’t want you to know about.”
I’ve heard that line and I always say, “Really? So secret that you are advertising on national syndicated radio secret?”