How do you check out the history of a debt settlement company?

One resource you can use is the Better Business Bureau. It provides a way to see if there have been complaints about the company. The BBB also provides reliability reports about businesses, including debt settlement companies. The national online portal for Better Business Bureaus, www.bbb.org, will provide an easy way to access your local one.

You can contact an industry association, such as the International Association of Professional Debt Arbitrators or The Association of Settlement Companies, to see whether the company in question is a member. While this does not necessarily provide a strong guarantee of quality, since the industry is beginning to try to police itself, a company that is a member of an industry association is at least somewhat more likely to be on the up-and-up than one that is not.

You can contact your state’s Attorney General’s office. Sometime the AG itself will have a role in regulating debt settlement companies, or at least in following up on complaints about them (including bringing legal action, when appropriate); other times, the AG can direct you to the appropriate state agency or department. You may be able to find out if there are outstanding complaints, claims, or lawsuits involving the company.

Finally, don’t forget to do a few simple Google searches or the equivalent—you’d be surprised at how much you can turn up. Try searching under the name of the company, its initials, and the names of any owners, principals, or employees of the company which you know.

To be safe, it's better to use a debt settlement attorney rather than a debt settlement company. Unlike companies, attorneys are bound by ethical laws and can usually get the job done at a much lower cost.