Tip-offs to Rip-offs of debt negotiation companies

Steer 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 state Attorney General, local consumer protection agency, and the Better Business Bureau. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Also, ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is.