Why is it important to escape fraudulent settlement companies? If you deal with a dubious company, you can rest assure that you will not enjoy the benefits of settlement and that you would be forced to opt for bankruptcy. The concept of a fraudulent & free debt settlement service provider does not exist.
Even if free, these service providers may steal your private and confidential financial information. However, bulk of fraudulent companies operates for profit. They charge money for services that are not rendered or are not rendered properly. A person should opt for settlement if the credit score has taken a hit due to irregular repayment. Further, the amount of data should be high ranging in tens of thousands of dollars.
If these two points are fulfilled, then and only then does a settlement deal prove worthwhile. One of the biggest disadvantages of these disqualifications is that any person who is suffering from such a problem will be very close to bankruptcy. In such a scenario, if the transaction turns out to be a fraudulent one, you can be assured that bankruptcy will be the only solution left open.
Unlike consolidation or credit counseling, you will make fundamental changes to your financial planning. You will stop making payments to the credit card issuer of the unsecured lender. You will deposit the money in an escrow account and you will try to convince the lender to go in for a settlement. If you work through a fraudulent company, no negotiations with lenders will take place.
The credit card issuers become convinced that you are trying to avoid them and are trying to run away without repaying the loan. Needless to say, this will bring down what little goodwill you have down to zero. Those who have deal with these companies in the past find themselves unable to even get an appointment with the credit card issuer. Legal action followed by bankruptcy – this is usually the consequence of dealing with a fraudulent company.
Needless to say, you should do your best to avoid such transactions. The best way to go about this task is to make use of the World Wide Web. Check out online resources and you will easily find all the information you want to overcome this problem. From tips and hints to identify fraudulent companies to resources that will fetch you the best settlement deals. You can find everything online.