Debt Relief Scams

Many debt relief or debt consolidation programs are just scams that will take your money but won't settle all your debts, and some of your creditors could still sue you to collect.

I have heard more than one sad story from consumers who paid money to someone who promised to settle all their debts for a "low" monthly payment or one-time fee, only to find themselves still hounded by debt collectors.

There are some attorneys who are taking up the noble cause of fighting the debt relief scams directly. In my practice, I help people fight the abusive collection agencies and debt buyers that pick up the debts not settled by the debt relief scams and then — surprise! — come back to haunt you. The debt collectors that come back to haunt you may be breaking various consumer protection laws, and if so, you can fight back.

If you want to learn more about debt relief scams, there is a wealth of helpful information on the Federal Trade Commission page about debt relief scams. The FTC page is frequently updated and is a great, easy-to-read resource for real people.

Illegal Debt Adjusting

Debt adjusting — the managing, settling, distributing or otherwise adjusting of a debt — is strictly regulated in Washington state. A Washington "debt adjuster" may only charge a $25 upfront fee and 15 percent of the total debt for the debt adjuster's services, and must fully disclose the terms of the contract with the consumer, among other requirements. If the debt adjuster violates this law, it is a misdemeanor, and it violates the Washington State Consumer Protection Act.

Beware Of Debt Relief And Debt Consolidation Scams. Consult A Lawyer.

If you need legal advice regarding debt settlement, or if you paid some scam artist to settle your debts, but you are still getting hounded with calls from collection agencies or "zombie debt" collection lawsuits, call me, attorney SaraEllen Hutchison, at 888-339-3942.

I am a member of NACA, the National Association of Consumer Advocates.