Student Loan Debt Settlement: Is it a Scam?
If you have recently graduated, you are probably concerned with how you will repay your student loan debt. You are not alone – student loan debt has been predicted as being the next financial crisis to impact our country. For the debt settlement industry, this is good news because it provides them a way to make more money. While some offers to settle your student loan debt are legitimate, if you see promises that ALL of your student loan debt can be eliminated, it is likely a scam.
A student loan debt settlement company may guarantee that they will get you a lower monthly loan payment, but you must pay an expensive upfront fee for their services. Some of the more unscrupulous companies even go so far as to claim they are affiliated with federal loan relief programs. It is important for borrowers to understand that nothing can be guaranteed when it comes to student loan debt settlement. Don’t get caught paying costly fees for services that you will never get. Instead, work with one of our student loan debt settlement attorneys for advice and guidance you can trust.
According to the Federal Trade Commission (FTC), an overwhelming number of borrowers have filed complaints regarding debt collection and debt settlement companies. As a result, the FTC has filed numerous lawsuits against agencies for their alleged fraudulent credit-related services that have cost consumer victims hundreds to thousands of dollars.
Most of the debt collection problems began with the mortgage crisis. Companies offering debt settlement services began appearing everywhere making promises they could help homeowners avoid foreclosure and offering to refinances mortgage loans with more beneficial terms. What actually happened in many cases, however, was that the homeowner would forward their mortgage payment to the debt settlement agent who never forwarded it to the mortgage lender. The agent would claim that by withholding the payment, it would force the lender to eventually agree to settle for less. Unfortunately, this rarely happened and the borrower was left with even more debt and a severely damaged credit score.
If you need assistance settling your student loan or mortgage debt, don’t become the victim of a scam! Let a trustworthy lawyer assist you. The attorneys at Fitzgerald Campbell represent debtors all over the State of California in debt settlement, collections harassment and credit card lawsuits. If you have a matter relating to a debt you owe, contact us today by calling 866-927-8289 for a consultation.
Posted in: Student Loan Debt