Federal Trade Commission Reminds Consumers to be Cautious When Seeking a Debt Relief Firm

With many Americans still weighed down by debt, there seem to be an endless number of firms out there offering to help. However, not all of these people are completely on the up-and-up. The Federal Trade Commission is trying to crack down on debt relief services that mislead customers with unsubstantiated or false claims and are really just out to put consumers deeper into the hole.

Here are some tips to keep in mind.

The FTC has put together five warning signs to look out for when trying to decide whether to go with a debt relief firm. The FTC says to stay away from any company that:

1. Promises that unsecured debts can be paid off for pennies on the dollar.
2. Requires substantial monthly service fees and demands payment of a percentage of what they’ve supposedly saved you.
3. Tells you to stop making payments to or communicating with your creditors.
4. Claims that creditors never sue people for not paying their unsecured debts.
5. Claims that they can remove accurate negative information from your credit report.

[ Federal Trade Commission ]