Stop Collection Calls & Negotiate Debt Settlements
Fallacious Protection From Creditors
The only thing debt settlement companies can do to protect you is to try to negotiate your settlements before your creditors take you to court. They can also suggest that you stop the collection calls by writing letters to your creditors and request that they only contact you in writing. Other than this, there is no legal protection for you if you chose to work with a debt settlement company. They also don’t tell you that creditors can and usually will pursue you for full payment of your debts. If you chose to work with a reputable non-profit organization that creditors trust, then they are more likely to work with you and put off any legal action or collection activities.
They Say They Are Legal
Just because a debt collection company is legally licensed to operate in the United States doesn’t mean that it is licensed to operate in Canada. Most American for-profit debt settlement companies are not licensed in Canada. Most provinces require debt settlement companies to obtain a “debt poolers license”. However, many American debt settlement companies are avoiding this legislation by never touching their client’s money directly. They get their clients to save up their own money and then send a bank draft to their creditor once a settlement is negotiated. However, these companies will still debit their clients accounts for up to four different types of fees.
What Do Other People Say About Their Debt Settlement Program and Services?
Any debt settlement company can portray themselves and their services as being they world’s best kept secret, but what do other people say who have dealt with them?
- Check out the Better Business Bureau. What is the company’s rating? Can you trust a debt settlement company with an “F” or “D” rating? The Better Business Bureau has even publicly warned Canadians about some debt settlement companies.
- Do a Google search. Are a lot of people upset after dealing with this company? Has anyone filed a lawsuit against them? Has anyone else posted their research about this debt settlement company online?
- If the company claims to have a Canadian office, then check it out. On Google Maps you can switch to street view and check out an office in a distant city. A company may claim to have an office in a certain city, but it is really only a post office box with numerous other companies using the same address.
Another thing to be careful of is that a number of debt settlement companies use different names from time to time. So if you can’t find much information on a company, it could be because it is using a different name now. A lack of information about a company online should probably be viewed as red flag.
Why Talk to Creditors?
When you’re in debt, your creditors can help you. But communicating with them effectively is key.
Debt Settlement Dangers
Working with a for-profit debt settlement company can cost you. Here’s what to watch out for.
Are you curious about what credit counselling is or how it works? Here’s what you need to know.