Debt settlement Consumers Beware

Debt Settlement - July 25 2009, 3:44 PM

In these troubled economic times, it seems as if it's impossible to turn on the radio without hearing an ad for debt settlement.

Credit Solutions of America, the largest debt settlement company in the country, claims it can help clients reduce their debts by as much as 50 percent of what they owe.

But some consumers told ABC News that they were forced to pay fees up front and did not get their debt settled.

"We'll help you settle your debts for pennies on the dollar," the commercials promise.

Read the ABC news blog here:

Claims of 'Becoming Debt-Free' Fall Flat for Consumers
Some Credit Solutions of America's Clients Say Bills Grew Instead of Shrank

There used to be about 20 debt settlement companies in the United States.

There are now closer to 2,000.

They sprang up after federal law changed, making it harder to qualify for bankruptcy, and they have proliferated in this down economy.

Have you been a victime of Debt Settlement?

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