Debt Settlement Red Flag
4 Things You Need To Know About Any Debt Settlement Company
1) The fee: It should be based on the amount of debt that the company is able to settle for you and only a percentage of the savings.
Debt Settlement Red flag: If the company charges a percentage of your total debt upfront and monthly fees, walk, no run away!
IN FACT recently in Canada some debt settlement companies have turned into law firms to avoid the new legislation which disallows upfront or monthly fees (stay far away from these companies).
2) The cancellation policy: There should be a money-back cancellation policy in place of at least 30 days.
Debt Settlement Red flag: If the company doesn’t offer a money-back 30 day cancellation policy, find one that does.
3) The timeline: No company can promise an end date, but if you have multiple debts, the first one should be settled within a year.
Debt Settlement Red flag: If a company promises a faster return, it may be spinning the truth.
4) Where is my money? Once you send it to the debt settlement company, it should be kept in a Bonded Trust account.
Debt Settlement Red flag: If the company asks you to hold on to the money or doesn’t keep it in an insured account, the company isn’t doing its job and you should exercise extreme caution!
We are proud to say that Canadian Customer Debt Relief Inc. adheres to the best practices in the industry.