Protecting Yourself from Credit Counseling Scams

With our nation’s current economic problems, more and more people are finding themselves struggling with overwhelming debt. Unfortunately, there has also been an increase in fraudulent credit counselors willing to profit from other people’s problems. If you have been looking for assistance with managing your credit, be sure to take the right precautions to protect yourself from scams.

Austin bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP want to help you protect your rights during this difficult time. Call our offices at 512-338-1100 for important information about repaying your debt.

Steps to Take Before Contacting a Counselor

Many so-called credit counseling agencies lure customers in by making grandiose promises about clearing their debts and restoring their credit. If you want to make sure your credit counselor is responsible and helpful, take these steps before sending anyone a payment:

• Consult the US Trustee, the agency in charge of overseeing bankruptcy in the US. Their website provides a list of approved credit counselors in your area. It is a very good idea to choose from this list, rather than an advertisement or phone book.
• Be wary of any promises that sound “too good to be true.” A credit counselor cannot provide you with a new credit history or get all of your debts waived without filing for bankruptcy. If a credit counselor advises you to challenge all of your debts, or simply stop making payments, they are most likely committing fraud.
• Do not agree to any make payments before you have received services.
• Do not sign any document without reading it carefully, or even better, having your attorney read it. A contract with a credit management agency should clearly spell out how the agency will help you, and approximately how long services will take.
• Contact your creditors to make sure they are willing to work with the credit counselor or debt management agency you have chosen.

Contact Us

If you have any questions about your legal rights or options while repaying debt, Austin bankruptcy attorneys Slater, Kennon & Pugh Ltd.LLP are ready to help. Contact our offices at 512-338-1100.