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Things Debt Settlement Companies Do Not Want You to Know

A debt settlement company can be appealing.  They often come across as caring and their plans seem simple.  These companies may seem like a great option because the thought of hiring an attorney is intimidating and even scary.

What is a Debt Settlement Company?

A debt settlement company offers an array of services such as:

  • Debt settlement.
  • Credit counseling.
  • Debt management.
  • Credit repair.
  • Debt collection.

In the state of Florida, a debt settlement or credit counseling company must be certified or licensed.  So, the good news is, there are standards.  In 2009, the Florida Senate released the Regulation of Debt Relief Services report in an effort to regulate debt relief companies which were increasing their fees to compensate for the increase in risk of non-payment.  To answer this increase in cost, regulations were implemented and/or enforced.

When you enlist the services of a debt relief company, you normally send them money to save for you.  When the sum of money becomes enough to pay off a debt (often times lower than the amount owed to the creditor), they will use the money to do so and take a fee.  Fees can include:

  • A start-up fee.
  • A percentage of the amount they saved you from paying.
  • A monthly fee for services.

Why is an Attorney a Better Option?

An experienced attorney will have a firm grasp on relevant laws.  The attorney will know if a debt collector has violated the Federal Debt Collection Practices Act (FDCPA) and they can protect you if the collector elects to sue you.  Many times, they can get the amount of your debt lowered or eliminated.  Also, debt settlement attorneys may offer credit counseling services in addition to their protection.

If you are in need of a debt settlement attorney, contact Elias Dsouza of Dsouza and Strachan Lawgroup Group in Plantation, Florida.  His team has the knowledge and experience required to counsel you through credit repair and protect you from abusive debt collectors.

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