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When your debt situation becomes unmanageable, turning to a service that offers help in solving debt or credit problems may seem like a reasonable action. Some things to look for below.
Many debt and credit agencies offering too-good-to-be-true solutions to your financial problems, are just that - too good to be true. Some businesses that offer debt resolution or credit repair plans may charge high or hidden fees and fail to follow through on the services they sell. Others may misrepresent the terms of their service, failing either to explain certain costs or to disclose the complete terms of the agreement.
The following questions will help you to carefully review a company, the services they offer, and the terms of the agreement you're entering in to. Be sure to consider several companies before choosing to do business with any organization.
Things to Consider:
--Check out any company with your state Attorney General, local consumer protection office and the Better Business Bureau in the company's location. They may be able to tell you whether other consumers have registered complaints about the business.
--Any reputable company should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If not, consider that a red flag and go elsewhere for help.
--Don't rely on oral promises. Always get everything in writing.
--Educate yourself fully and use good sense when entering any financial arrangement.
Questions to Ask:
--What services does the company offer, and how will they help your situation?
--What are the costs and fees of the company's service? What is the basis for their fees? Will you be charged anything before the company can/will help me?
--Will there be a formal written agreement or contract?
--Will you be working with agent or several? Are the company's agents accredited or certified? If not, how are they trained?
--Who regulates, oversees and/or licenses this company? Is their company audited?
--Where does the company receive their funding? Are they a non-profit, or for-profit organization?
--Does the company offer educational materials? If so, will they send them to you, or can you access them on the Internet? Is there a cost for these materials?
--After helping you solve your immediate problem, will the company help you develop a plan for avoiding problems in the future?
--What is the company's privacy policy? Can/will they assure you that information about you (including your address and phone number) will be kept confidential?
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