Debt Settlements

People are quite desperate to get out of this debt and they are going to believe anything that anyone might tell regarding debt relief. They will often turn their notes towards debt relief companies, which are promoting various debt settlement and consolidation plans for solving their problems well. But for most of them, not only will this relief won’t come but the steep costs of the plans can further dig right them more deeper into debt. In the end, they might end up with extra thousands of dollars on their shoulders, on top of the existing debt, penalties and interest rates.

According to a recent study and survey, the Federal Trade Commission announced a settlement of $7.9 million with one debt relief operation, which the agency stated has scammed people by just making some false promises. The company actually waived the rights to contest or challenge the charges as per the settlement. What FTC came out as a result was quite troubling. In case, the right knowledge over here is power, then you can look at the anatomy of how this scam actually worked. You can check out some of the debt settlement reviews to learn more about the scams in details.

More about the scam:

Here, the promoter is Debtpro 123. Unfortunate enough, this company is not the only one in this lot. You can log online to look for some of the company names, which are currently intended to lure you right into thinking that they can feel the pain and willing to help you in eliminating debt within short years.

  • As per the pitch over here, there was a FTC complaint. According to this complaint, the company in question stated to the folks that it is a debt resolution program, which I designed to resolve the credit card and other kinds of unsecured debts of consumers. It will always include personal loans, department store accounts, student loans, medical bills and even accounts with some collection agencies.

  • It further stated to the consumers that it will reduce client’s entire debt by around 70 to 80% on average along with the fees. With the settlement getting as low as 10%, it means that when everything is all said and done, the client’s savings are likely to be around as much as 20 cents on dollar, which will actually include the fees too.

The result and the scam:

According to the statements made by the false company, it was rather attractive and has successfully forced people to come to their sides. Think about it for a second. What would you do if someone told you about these points? With some outstanding customer service, informative and honest advice and proven form of debt settlement process, they claim to have ensured clients becoming debt free in a quick and comfortable manner and get right back on path of the current financial freedom.

  • There are two words around here, which might catch your mind pretty fast and those are “comfortably” and “quickly.”

  • Unless you come across some big bucks, the procedure of paying down the debts is way too long and considered to be painful at the same time. In case, someone tells you something different in this regard, make sure to not believe anything they say.

  • For all the unbelievers out there, you have the debt calculator available online as well. This particular software has been designed to back up some of the unrealistic and ridiculous claims of quick form of debt reduction.

The phases of the programs:

There are mainly two phases of the program available. You better check out the options before finally coming to a standard conclusion.

  1. In the phase one, the customers were asked to put money in settlement account or the creditor fund. They were actually told that they needed this amount of money for negotiating with the creditors in question.

  2. Then you have the phase two, where the customers were completely assured that they will work on their case just for changing and getting all the debt terms changed as well.

For these two phases of the scam section, the consumers were always advised to stop paying bills and stop all kinds of communications with creditors. If you really listen to them and worked out on the same, then it is a bad move to be honest. In most of these cases, people get to find out later that the scam artists have done nothing on their behalf. On the other hand, the money, interest and penalties are just piling up as usual while they have been waiting for some relief.

About the FTC complaint:

The FTC complaint rather stated that the DebtPro has made reference to the legal department. In phrasing that mimicked by some of the other firms, it has told the clients that the attorneys are on their way and will communicate with creditors and debt collectors’ directly through telephone or via mail. They are always going to audit the bills and collection methods are widely used by creditors for determining if the consumer based rights have properly been violated.

Other promises as made:

The scam firm easily stated that the credit will turn out to be better as the firm will work hard to remove negative information right from credit files. The only thing is that it failed to make it clear if the information was actually true or that you did not pay bills as agreed upon, this information will not get removed. As per the law, most of the negative based credit information will stay for a period of seven years on your bills.

Get to the real plan:

The main aim of such companies was to make money off some desperate people who are neck down in debt and want to get rid of the situation. These fake and scam people are always looking for their own sides and can extract as much money they can from these people. So, keeping eyes on to find them is always important.