The idea that you can sit down with a debt negotiator and have some of your bills wiped out can be appealing, but the Better Business Bureau has a few warnings.
Your Better Business Bureau recommends steering clear of debt negotiation companies that:
• guarantee they can remove your unsecured debt
• promise that unsecured debts can be paid off with pennies on the dollar
• require substantial monthly service fees
• demand payment of a percentage of savings
• tell you to stop making payments to or communicating with your creditors
• require you to make monthly payments to them, rather than with your creditor
• claim that creditors never sue consumers for non-payment of unsecured debt
• promise that using their system will have no negative impact on your credit report
• claim that they can remove accurate negative information from your credit report.
If you decide to work with a debt negotiation company, be sure to check it out with your Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Also check to see if they are licensed with the Michigan Office of Financial & Insurance Regulation.
Better Business Bureau Serving Eastern Michigan
30555 Southfield Road, Suite 200
Southfield, Michigan 48076-7751
www.easternmichiganbbb.org
