Debt Settlement on Today Show

The Today Show recently did an expose on debt settlement companies. While I agree wholeheartedly with their negative opinion on most debt settlement firms, they have failed the test of fair and balanced journalism.
Investigative Today Show reporter, Lisa Myers, spent all of her time uncovering the ugly truth about one company, Credit Solutions. If you remember an earlier post on my blog (https://debtsettlementstory.com/debt-settlement-companies-some-incur-more-debt/), I had also contacted this company.  I was almost desperate enough to fall for their sales pitch. Luckily I didn’t. Here’s a review of their pitch in a nutshell:

  • I was to deposit $2000/month into an escrow account.
  • The first 6 months of these payments into that escrow account would go towards paying the debt settlement company for their services.
  • I would continue to make $2000 payments for approximately 36 months.
  • As settlement offers came in, they would consult me.
  • The banks would be paid from this settlement account.
  • In 36 months, I would be out of debt.

In reality it doesn’t work this way. Most consumers never finish the program. In fact, once the settlement offers come in from the banks, most clients don’t have enough money in their escrow account to pay the offer. Most of their immediate monies have been used to pay the debt settlement company’s fees. Most consumers file bankruptcy.
This is the exact conclusion Lisa Myers came to. However, she fails to see the bigger picture. Not all debt settlement companies have such egregious practices. In fact, there are about half a dozen or so that are true consumer advocates.
She got it right when she said the FTC will soon pass laws banning the upfront fees. Why didn’t she go on to say there are debt settlement companies out there who ALREADY take their fees on the back end?
Unfortunately, Ms. Myers’ article is the typical sensational reporting that we have come to expect. There is nothing positive about her piece. No real help to the desperate consumer. Only doom and gloom.
Had the Today Show really wanted to investigate debt settlement companies and actually disperse useful information to help those in need, she would have mentioned companies like Consumer Recovery Network, Zip Debt, Hoffman Brinker and several others who really make a difference in this sector. Here’s what’s great about these debt settlement companies:

  • No hard sell of their program.
  • You talk to a real debt settlement counselor, not sales person, when you call the company.
  • Performance based commissions that are paid AFTER YOUR CREDITORS GET PAID!!!
  • DIY programs offered for those consumers who are industrious.

In fact, all 3 of the companies I mentioned ENCOURAGE the consumer to do it themselves. They make less money per client with this business model, but they know the success rate is much higher and the benefit to the economy is much greater.
Here is Today’s video.
http://today.msnbc.msn.com/id/26184891/vp/38123545#38123545
Stay afloat. Stay focused. Wealth and freedom are in your future.
Jonathan

Enhanced by Zemanta

Debt Settlement Scoundrels

And the beat goes on…..

How long will it be until Federal regulation appropriately addresses these problems?  Senator Schumer got the ball rolling on April with S.3264 but it didn’t get passed. Hopefully legislation will be under way during the Fall session. In the meantime, we can continue to raise awareness.
Here are a few indicators that change is in the air.
?

Debt Settlement Firms Peddle Relief But Actually Put Debtors In Deeper Hole

“State attorneys general from New York to California and consumer watchdogs, such as the Better Business Bureau, say that debt settlement firms”™ proceeds come at the direct expense of financially troubled Americans who are being swindled out of their last dollars with dubious promises, The New York Times has reported.” ….read more HERE
?

Be wary of promises from debt relief companies

Millions of Americans are drowning in debt. If you believe the ads “” with their bold claims of success “” a debt relief company will help you pay off your bills for pennies on the dollar.
The ads are everywhere:

  • “Be debt free in as little as 24-48 months!”
  • “Erase debts 50 to 70 percent or more!”
  • “Legally get debt down to zero.”

It sounds so easy……read more HERE
?

Stay focused. Stay afloat. Wealth and freedom are in your future.
Jonathan

Wealth of Debt Settlement Opinions

The more I read about debt settlement, the more I realize how much misinformation is flying about.  Since the potential customer for debt settlement is usually in crisis, they are more apt to believe the unbelievable.
PEOPLE! Do your research.
Here is an article I came across that succinctly explains the trappings of debt settlement companies. The author also suggests a simple way to avoid the trappings of debt. Be frugal!!
Check it out.
RIPPING OFF DEBTORS
This guy has a great take on the psychology of debt and money.
Stay focused. Stay afloat. Wealth and freedom are in your future.
Jonathan