Why Are Debt Settlement Companies So Dangerous?

Consumer Rights Attorney James Selbach praises Attorney General Cuomo for his investigation of debt settlement companies. Selbach explains why the predatory practices are so enticing and how consumers can avoid making their situation worst.

SYRACUSE, NY, -- The recent announcement of New York Attorney General Andrew Cuomo’s nationwide investigation into the debt settlement industry has consumers and companies on high alert. As a result of Cuomo filing suit against two debt settlement companies, many are starting to realize the danger posed by these companies. Consumer Rights Attorney James Selbach praised Cuomo for his proactive attack on the abuses of these debt settlement companies. “There are so many companies preying on consumers at their most vulnerable moment. Factual information and exposing these predatory practices are the only way consumers can protect themselves,” says Selbach.

The Selbach Law Firm, serving all of Central New York has been practicing consumer protection law for over 30 years. The firm, which offers both bankruptcy and non-bankruptcy solutions prominently features consumer alerts on their website. The warnings contain detailed information on the deceptive practices and dangers of debt settlement companies and foreclosure rescue companies. “Consumers need to know they have options. But they also need to be sure they are working with a company who will actually do what they say and not just take their money. Information and warning signs are the key,” says Selbach.

Selbach outlines why the predatory practices are so enticing and how consumers can avoid making their situation worse. “They appeal to struggling consumers every dream and make promises they have no intention of keeping.” Selbach points out that while most think they are talking with a debt counselor, it is actually a skilled telemarketer. Selbach also says money is paid to these companies and no real services are ever rendered on the consumers behalf. “Hard working people pay high monthly fees and their money never goes to the creditors, they still receive harassing phone calls and the program is never completed. The only winners are the debt settlement companies-that makes it a scam.” Says Selbach.

So what can consumers do to protect themselves? “You have to take emotion out of the situation and ensure you’re making the right decisions in the long term,” says Selbach. He suggests consumers seek information so they know the right questions to ask. “Simple questions like; how much are your fees each month? Or how much money will go to the creditors? And what is your completion rate? Is a great starting point,” says Selbach. He explains that many of his customers have already spent thousands of dollars with debt settlement companies. “They believed they were digging themselves out of a hole, only to realize their problems got even deeper.”

Selbach hopes that the actions of Attorney General Cuomo and his own efforts to inform the public will help those struggling with debt find the right solution.

About The Selbach Law Firm:

The Selbach Law Firm, serving all Central and Western New York is the leading authority on Consumer Rights and Bankruptcy Law. Veteran Attorney James Selbach has been protecting consumers from creditor harassment and foreclosures for over 30 years. With offices in Syracuse, Buffalo and Albany, NY, The Selbach Law Firm helps consumers out of debt by offering both bankruptcy and non-bankruptcy options. Visit the Selbach Law Firm at www.SelbachLawFirm.com Media inquires and interviews contact Ryan Prucker at 315.430.7584 or ryan@imageL.net

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