FTC Hosts Workshop To
Examine
Debt Settlement Industry
When It Comes To Debt Settlement - Look Before You
Leap!
I’ve said this numerous of time before, but
the debt industry has gotten W-A-Y out of control! I dare say,
in the past eight to ten years, there have been more
charlatans drawn to this industry than any other. One area
that white collar con artist have used to bilked
millions of dollars from unsuspecting debtors, is the
debt settlement programs. The number of debt settlement
companies that have popped up is alarming. It alarming because
they promise debt laden consumers the world, grab outrageous
upfront fees, then disappear into the night. Thing have gotten
so bad, that the FTC held a workshop to address this
distressing issue.
Debt Settlement Shams… They Can Run But They Can’t
Hide!
Before we get to the workshop on debt
settlement held by the FTC, I first want to share with you an
incident that clearly reveals why this workshop and more of
them are necessary. When Donald L. out of Chicago, Illinois,
got laid off from the mortgage industry in late 2007, he had no
idea what he was about to face. As he searched for comparable
employment, (his income was at $100k annually) and found
nothing, his bills started piling up. A great negotiator,
Donald held off the inevitable for a while. But eventually the
debt
collectors started calling, writing and sending
e-mails.
In over his head in debt, Donald frantically searched the
Internet for a workable
debt solution. He thought he had found his answer when he
came across a professional looking debt settlement website that
promised everything he was looking for. After providing the
pertinent information about his accounts and debts, Donald
handed over a non-refundable upfront fee of
$3000.00.
In addition, he agreed to pay a $39.95 monthly
administrative charge, plus pay 20 percent of any savings
realized by his debt settlement. In exchange, they promised to
immediately stop all of the
debt collectors from contacting him. They emphatically
stated that they would set him up so he would altogether avoid
bankruptcy, and then bring his FICO credit score back up into
the 800 range. The
debt counselor confidently stated that due to their
proprietary debt settlement methods, all of his accounts would
be reported, “PAID AS AGREED,” in about 90 to 180 days.
Donald and his wife were ecstatic, in less than six months;
their world would be back to a semblance of normalcy. At one
point, they were waiting to exhale, but now sighing in relief
because they were avoiding bankruptcy and putting the stress of
their debt
problem behind them. But their joy was short lived.
The phone calls and letters from the debt collectors never
stopped coming. As a matter of fact, they increased! When
Donald contacted the debt settlement company he had hired, he
started getting the proverbial run around. They had an excuse
and explanation for everything. That is until they stopped
taking his calls.
In the end, Donald and his wife realized that had been
burned by a smooth operator. Out of money and left with nowhere
to turn, they had to do the thing they dreaded most, which was
file bankruptcy. The morale of the story is; check the company
out from head to toe before doing business with them and avoid
any occurences of paying upfront fees.
Here is the info on the workshop to examine the burgeoning
debt settlement industry.
FTC to Hold
Public Workshop to Examine Debt Settlement Industry;
Agency Seeks Comments, Original Papers, and
Participation
The Federal Trade Commission staff will host a workshop on
September 25, 2008, to explore growth in the for-profit debt
settlement industry and to examine its impact on consumers and
businesses. “Consumer Protection and the Debt Settlement
Industry” will bring together consumer advocates, industry
representatives, state and federal regulators, and others with
relevant expertise to provide information on a range of issues,
including the economic and market forces that have led to the
emergence of the for-profit debt settlement industry, current
business practices in the industry, the regulatory and
legislative environment, and the outlook for the future of the
industry.
The event, which is open to the public at no charge, will be
held in the FTC’s Satellite Building Conference Center, 601 New
Jersey Avenue, N.W., Washington, DC. There will be no
pre-registration. All attendees will be required to show a
valid form of photo identification, such as a driver’s license.
Members of the public and press may view the event Webcast on
the FTC’s Web site, www.ftc.gov. Any person may submit
written comments on the topics to be addressed, as well as any
original research, surveys, and academic papers. Comments and
papers must be received on or before August 15.
The FTC staff also invites interested parties to submit
requests to be panelists as soon as possible. Interested
parties should include a statement detailing their expertise on
the issues to be addressed at the workshop and their complete
contact information. Panelists selected to participate will be
notified by August 25, 2008. Prospective panelists should
submit their materials to (debt relief @ftc.gov).
The Federal Trade Commission works for consumers to prevent
fraudulent, deceptive, and unfair business practices and to
provide information to help spot, stop, and avoid them. To file
a complaint in English or Spanish, visit the FTC’s online
Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).
The FTC enters complaints into Consumer Sentinel, a secure,
online database available to more than 1,500 civil and criminal
law enforcement agencies in the U.S. and abroad. The FTC’s Web
site provides free information on a variety of consumer
topics.
(Debt Settlement Workshop)
Joel Marks has been helping people get
out of debt and avoid both bankruptcy and foreclosure for over
fifteen years. Utilizing savvy debt counseling, debt management
programs, Federal laws and a team of attorneys, debt counselors
and advisors, he has quietly assisted thousands come from under
the heavy burden debt.
Source: http://debterasure.com/
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