More and more states are cracking down on unscrupulous Debt Settlement firms that charge consumers hefty fees before performing a service. Calling debt settlement “a rogue industry” that gives strapped consumers false hopes while socking them with high fees, New York State’s attorney general, Andrew Cuomo, has announced an investigation involving numerous companies in the field.
Cuomo has recently issued Subpoenas and launched investigations into 15 Debt Settlement companies. The complaints where initiated mainly because of consumer complaints that Cuomo has received from New York residents about these firms over the last several years.
1. American Debt Foundation Inc.
2. American Financial Service
3. Consumer Debt Solutions
4. Credit Answers L.L.C.
5. Debt Remedy Solutions L.L.C.
6. Debt Settlement America
7. Debt Settlement USA
8. Debtmerica Relief
9. DMB Financial L.L.C.
10. Freedom Debt Relief
11. New Era Debt Solutions
12. New Horizons Debt Relief Inc.
13. Preferred Financial Services Inc.
14. U.S. Financial Management Inc. (operating as My Debt Negotiation)
15. Allegro Law.
Keep in mind the Attorney Generals office has issued subpoena’s to these companies in an attempt to learn the fee structure, number of clients and whether or not these companies are providing the advertised benefits. At this point Mr. Cuomo has not filed suits against these companies. When the results of the investigation are determined, a decision to move forward with a lawsuit or not will then be made.
Today over 2,000 debt settlement companies operate in the United States, up from just a few dozen 10 years ago. Unfortunately most of the 2,000 companies do not help consumers at all, but rather siphon large amounts of fees upfront and leave consumers worse off than they were before. Make sure to thoroughly research and investigate any company before signing a contract. You should also seek the advice of a qualified financial professional to help you to first determine the best financial strategy for your situation. Just because a debt settlement salesman can make something sound good, doesn’t mean it is the right strategy for you.
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