Risks Of Unaccredited Debt Negotiations

In today’s economy more people are seeking credit negotiations in order to gain control over their finances while the work to resolve their debts. While this strategy is effective for many people, there have been cases in which choosing the wrong company to assist in negotiations ended up in a scam. Unfortunately, there are non-reputable companies out there operating just around the corner from the legitimate ones.

The Risks

Some of the risks in dealing with an unaccredited debt negotiation or debt relief agency are:

• Company never negotiated a deal with your creditor, but charged for services
• Creditor never agreed to a deal or modified payment term with company
• You may be unknowingly liable for full debt or not approved for a modified payment term
• Your account could be secretly in default or accumulating penalty fees
• Future negotiations can be compromised due to unsuccessful dealings

Looking For The Best

The best way to avoid becoming victim to any of the above risks is to get educated. There are many resources available through the Federal Trade Commission’s website to help you learn about what to look for in a quality debt negotiator. Some signs of a reputable company are:

• Doesn’t attempt to “sell” a particular service or solution
• Staffs licensed or credentialed employees, such as financial advisers, accountants or debt negotiation lawyers
• Fees are paid after services are rendered or offers a money back guarantee
• Allows you to participate in negotiations and stay in open contact with the creditor
• Provides a copy of the negotiation agreement in writing