As in many businesses, there are many unethical and unscrupulous companies out to make quick profits. This situation is getting very rampant especially in some markets like debt settlement where the customers are in hot water and were desperate to improve their financial situations. So, you must be extra careful not to fall for any if the debt settlement scams. In order to do that, you need to conduct your due diligence properly. Here are a few guidelines to follow if you want to avoid falling for these scams.
Number one, you must be wary of new startup companies. The companies that are running Debt settlement scams will not stay in business for long so that they will leave no trial. The usual practice is these companies will close down one business and reopen another one different name. The owner and in some cases, the staffs are usually the same. Some companies are legitimate. In order to avoid the scams, all you need to do is to ask for the name and background of the owner and then how long they have been operating. You can then conduct a search using the Internet or other means. If the searches give you suspicious information, you should be alerted to them.
Number two, you can ask for their list of satisfied customers in your area. If these companies are as good as they claimed, they will not hesitate to give your some references. It only takes a few minutes to browse through the list and you may find someone you know personally. After all, good credit card settlement companies will not have any problems collecting testimonials from their customers. These can be in the form of letters or photo captions.
Lastly, you may check with one or more of your credit card companies. This method is not so effective as they may never heard of the company. Furthermore, they are not compelled to reveal information to you and may only be interested to collect their debts. You will never know when one of the staff there may have uncovered any “dirt” about a particular company. So, it is worth some efforts to contact them.
Debt settlement scams are getting very serious in the country now as they have the potential to cause further grieve to the family members that fall for them. At the best case, the person had lost his money in appointing these companies as their consultants. At worst, the person may not have enough to pay off his debts and have to declare bankruptcy. Do not be part of the scams statistics.