With more and more businesses being found guilty of taking advantage of a person's tough financial situation, it's important to really look into and investigate any company that promises it will be able to solve all of your money problems.
When looking at debt relief solutions there are many routes a person can take: debt consolidation, loan modifications and - depending on your situation and what makes the most sense - Chapter 7, 11 or 13 bankruptcy protection. However, if you go through an illegitimate business, none of your problems will go away and can even get worse.
Take 800 Credit Card Debt and Debt.com, this was a recent operation that the Federal Trade Commission just took down, as the company that did business under the two names was making false claims to consumers. According to sources, the company claimed to do debt relief services, however, what it was really doing was selling sale leads to other debt settlement providers or brokers who then resold them.
The FTC also claims that 800 Credit Card Debt and Debt. Com was using phony testimonies for its ads.
According to the FTC, Stephen Todd Cook, and his companies, is being forced to surrender all of the funds that are in the companies' bank accounts. Aside from giving up the money in the accounts, Cook will also have to give the money from several of the assets he owns.
And, if the FTC finds that the companies did indeed misrepresent its financial condition to customers, a $28.2 million judgment will be brought against the companies.
These claims against 800 Credit Card Debt and Debt.com highlight the importance of why people with tough financial situations need to make sure he or she is going through a reputable business or talking with an attorney who has experience with debt relief options.
Source: The Wall Street Journal, "FTC Bans Debt-Relief Operation, Ordered To Pay Millions," 6 Dec 2010