The recent economic slowdown has seen a sudden increase in the number of debt settlement companies in the market. Most of these companies are good with the service which they provide but there are a few who are there in the market only to make money. Any person seeking debt relief must be careful of illegal companies. This article will point out some o the measures one must take to avoid hiring the wrong company.
The fees charged by the company can give you a fare idea about the company. Most of the reputed companies charge 15 % to 18 % of the total settlement amount to their clients. The frauds would ask you for much more than that and that to an upfront payment. Hence do not make any payments in rush.
Some of these fraud companies ask their client to pay money which they would use for settling their accounts but once the money has left the clients account the client never hears from the company again. Hence try to get a physical address of the company. Just a P.O. Box number is not enough.
Check the privacy policies before you sign. Many companies have a clause about selling information to a third party. These settlement companies have access to a lot of your personal data which you might not want to share with any third party.
Referrals from close friends or families who have been in a similar situation can be very helpful. They can tell you their first hand experience with companies and also direct you to a good one.
Once you have narrowed down your search to 3 or 4 companies try to do a background check on these companies. The Information about their past performance can be helpful in finalizing the company you want to hire.