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New York City goes after debt settlement firms

Created: On August 18, 2011 @ 4:36 pm In

Be careful who you go to for credit card debt relief. There are a lot of debt settlement companies out there who don’t deliver on all the promises they make but get paid anyway. Fraudulent [1] credit card debt settlement programs have become such a problem in New York that the city’s [2] Department of Consumer Affairs (DCA) is warning consumers about using them.

Debt settlement firms offer ‘false hope’

The DCA recently issued subpoenas to 15 debt settlement companies that were the subject of complaints by city residents or are based in the New York area. DCA Commissioner Jonathan Mintz said in a statement:

These so-called ‘debt settlement’ companies bombard New Yorkers with ads that fraudulently offer false hope, but instead deliver nothing but added fees and long-lasting financial ruin. Today we are issuing subpoenas to 15 debt settlement companies that are using such aggressive and deceptive tactics to prey on vulnerable consumers here in New York so that we can reveal the full extent of their wrongdoing and harm. I urge those struggling with debt to resist these too-good-to-be-true offers and instead take advantage of the City’s free, professional one-on-one financial counseling at one of more than 20 Financial Empowerment Centers.

Some debt settlement programs have come under fire for charging upfront fees to consumers without actually helping them find [3] credit debt relief. In some cases consumers struggling with thousands of dollars of credit card debt are left worse off than before they signed up to get help with debt.

You can get help with debt

If you’re struggling with credit card debt, there is help available. But keep in mind that you don’t have to pay someone a lot of money to settle your debt. While there are legitimate debt settlement programs out there, you may be able to negotiate directly with your creditors to set up a plan.

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URL to article: http://www.debthelp.com/blog/2011/08/18/new-york-city-goes-after-debt-settlement-firms/

URLs in this post:
[1] credit card debt settlement: http://www.debthelp.com/debt-consolidation/settlement.html
[2] Department of Consumer Affairs : http://www.nyc.gov/html/dca/html/pr2011/pr_080911.shtml
[3] credit debt relief: http://www.debthelp.com/credit-help/