Dec 9, 2015

Posted by Alexander rogers in Lawyers | Comments Off on A Debt Relief Lawyer Can Help Clients Avoid the Credit Counseling Trap

A Debt Relief Lawyer Can Help Clients Avoid the Credit Counseling Trap

A Debt Relief Lawyer Can Help Clients Avoid the Credit Counseling Trap

Some credit counseling agencies can be useful for consumers that are looking for a way out of debt. However, some aren’t the charitable, helpful organizations they claim to be, and their “help” can leave customers worse off than they were before. There are many ways to pay down debt on one’s own, but one feels as if they’re in over their head, they should consider the warning signs associated with credit counseling programs.

Researching Debt Relief and Credit Counseling Companies

If a client needs credit counseling services, they should learn about the following factors before making a decision.

Debt relief companies: Before enrolling in such a service, check with a local consumer protection entity and the state’s Attorney General to learn about a particular company’s consumer complaint record.

• Research: Clients should determine what types of services are provided, as well as the program’s costs and timeline for completion. Fees should be manageable and appropriate to the customer’s financial situation.

• Disclosure rules: Before a customer signs up, the credit counseling service must disclose relevant information and explain fees, terms and conditions.

• Non-payment: If the credit counseling service tells a customer to stop paying their creditors, they must explain possible consequences of the action.

Warning Signs to Look Out for

When a consumer shops for debt relief services, there are certain things to be avoided. Steer clear of organizations that charge fees before debts are settled, or those that request voluntary contributions. If a company does not offer information on fees and services, or tries to enroll a client in the program without an assessment of their financial situation, the client should instead call a debt relief attorney for help.

Asking for Legal Help

If someone is in debt and they can’t find a way out, they should call a consumer credit and debt relief lawyer such as Hogan & Associates P.C. A lawyer will be able to tell clients about their rights, and they can recommend the right credit counseling services. A debt relief lawyer can also tell clients whether they may be able to sue an unethical credit counseling service.

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