Debt relief companies come a dime a dozen, which means the chances that any one of the offices you walk into for help could be a scam. Unfortunately, more of these types of companies are taking advantage of unsuspecting consumers that are in need of debt relief services. The latest company charged by the Federal Trade Commission could be facing serious consequences.
Don't Be A Victim
The California-based company DebtPro 123, LLC was charged last week for defrauding customers. Accused of cheating hundreds of consumers out of $10,000 Debt Pro 123 allegedly took their money before any debt settlement agreements were obtained, often resulting in taking their fee without successfully negotiating on the customer's behalf. Also encouraging consumers to stop communicating with their lenders, many of DebtPro's customers faced serious consequences. Some found themselves under creditor-initiated wage garnishment orders, property liens, and some lost their homes to foreclosure.
The Federal Trade Commission is urging consumers to get educated about the common red flags that a debt relief scam is present, and to seek legitimate help from a qualified source. The FTC warns that there are three major signs you could be facing a scam (1) the company charges their fees before performing any debt relief services or securing a settlement agreement, (2) the company urges you to stop payments and communications with your creditor, (3) or makes promises or guarantees they can settle your debt for pennies on the dollar. Instead of taking a gamble with any one of these types of companies, the FTC encourages consumers to only seek debt relief services through certified credit counselors or a localbankruptcy attorney.