Taking Legal Action Against a Fraudulent Debt Settlement Company

With bad debt on the rise and consumers gradually growing more and more in debt to creditors the debt relief industry is flourishing. Many debt settlement companies brag and boast success rates of 83%, 95% even up to 100%. One company even claims they will pay you $100 if they can’t erase your debt in twenty-four hours. These types of claims leave in debt consumer with one question: How is this possible? In the midst of this economic depression Congress was left asking the same question.  

Undercover Answers

With the integrity of debt settlement companies in question nationwide, Congress sent out five undercover agents to unveil the truth behind their claims. The results they got back were no less then what they had expected; fraudulent claims in all five case studies. 

The fact of the matter is, the 83 - 100% success rate these companies claim is really more like a 1 - 14% success rate. If you are one of the many American who was scammed into enrolling in a debt settlement company and are considering taking legal action, here is some simple advice that should help you get your claim settled. 

How Were You Defrauded?

Before you file your complaint, be sure that you can specifically describe in what way you feel you have been defrauded. Typical fraudulent practices include the use of deceptive advertising, misleading presentations, and undisclosed consequences. 

  • Deceptive Advertising

How did you find out about the company you enrolled with? Was it a mailing, mass emailing, web advertisement, late night tv promo, local flyer? At this point, it is common for most people to forget how they were originally reeled into their current situation. If you have come across any evidence at all, setting it aside will be extremely helpful in the long run. 

  • Misleading Presentations

If you were lured in and contacted this company, there is a good chance that you were deceived only once. Most debt settlement companies will have a commissioned sales representative contact you via telephone. This sales rep is a swift talker who is paid either partially or entirely on a commission based salary and whose primary goal is get you to say yes and obtain any financial information from you that they can. If you have any voice mails, emails or settlement projections/estimations from these conversations keep a copy of them with the rest of the data you are collecting to mount your case. 

  • Undisclosed Consequence

As you undoubtedly are aware of now, there are many potential harmful consequences that can come as a result of dealing with a fraudulent debt settlement company. Many companies will quickly brush over these consequences as if they are a rarity. If you can collect any evidence that show these consequences were not vividly described to you at the start of the settlement process this information will also help.

Getting Help

Finally, since there are a number of the cases arising from coast to coast find yourself a nearby lawyer who has dealt with the circumstances at hand and seek out his assistance on your case. Unless you have a crystal clear description of of how these cases are handled by the legal system, the importance of attorney is of utmost value to you.

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