5 Simple Tips To Spot Unethical Debt Management Companies

As a consumer you need to be both careful and strategic when checking out debt management possibilities. There are many financial products out there to help you with your financial recovery, with debt management being one of the most popular consumer choices.

An ethical established debt management company can help you the customer to turn your life back around. This is assuming that they have your best interests at heart. Although the debt regulation industry is under tight regulation, it is still possible to encounter an unethical debt management company but if you follow these five steps you should avoid this.

1. Unavailable Counselors

If you find that the debt counselors are unavailable this can of course be genuine, but in quite a few cases this lack of availability can be a bad sign. Combined with some of the other signs you will read about, it should ring alarm bells in your head.

However it is really the opposite you should be hoping for, because a decent company will want to ensure you understand all aspects of what you may be committing yourself to.

2. Lack Of Information

If you find that the company is not giving you fee information upfront then be super wary! There may be fees disguised in the small print, and fees that they fail to mention. Do not be afraid to follow up on this issue and now that you’ve made the decision to use a specialist, don’t panic and go with an unethical choice.

As you are making a life altering decision avoid companies who demonstrate a weird attitude about giving information.

3. Comments Which Are Negative

There should be customer comments around online so please take a short time to read these. You will want to be guided by the experience of others.

It’s unlikely you’d stay in a hotel that your family had said was dirty!

4. Very High Fees

Before signing anything ensure you are comfortable with the fee structure. You can do this by comparing to a few other companies.

5. Poor Service

Service should not be below average or poor. This is not going to help your situation and doesn’t generally reflect much professionalism. Analyze your true feelings alongside the reviews of the company. If you’re still good to go, then continually monitor the service and progress as you proceed on your debt elimination journey.

15 Replies to “5 Simple Tips To Spot Unethical Debt Management Companies”

  1. Very informative article, but I must say that it is very hard to judge a company only by its social footprints. An extensive research is required before making an opinion about a company. However, such articles are always helpful in such a case.

  2. I agree with your list. Let me just add, however, that a consumer should follow his or her instinct. If one or some of those on this list are not present in a debt management company, that is already a red flag. Do not continue. Rather, scout for other reputable companies that will help you get back to your feet without any doubts.

  3. Great article. For me, the number of reviews matter. I mean, if there were more negative comments than positive ones, that is already a red flag for me.

  4. This blog has enlightened my mind to be always cautious on unethical debt management companies. This will sure help me as a consumer to be careful and strategic when checking out debt management.

  5. If the counselors are not available how will you understand and clarify your doubts? its better to check feed back on forums and by reading reviews.

    1. And if the counselor in NEVER available for you, best to just move along to another debt management company, no matter how great the reviews are.

  6. Hi, you talk about hidden fees but you don’t specify what these could be for. What exactly would hidden fees be and how much would they roughly be? Also if they don’t tell me, am I obliged to pay them later or can I argue against them?

    1. Hidden fees are simply any fees in the contract that they fail to point out and disclose to you verbally. These could be anything (such as fees for additional assistance that you assume are free or that they were just being extra helpful), or any other type of fee that you can imagine. The best thing to do is read the contract – or better yet, get a legal advisor to review it for you and break down each clause so that you will know exactly what you’re getting into. Because ultimately, whether they verbally disclosed a fee or not, they could still argue the fact that it was your responsibility to read/review the contract. And they just might win the argument on that basis.

  7. Don’t be overwhemed by the choices and options in front of you. Decide after due diligence to avoid regrets later. Read a few reviews and ratings before deciding.

  8. Wonderful pointers for spotting a less-than-best debt management company. While some decision points can be based on common sense, I love how you added in the tips for hidden fees and information. Thanks to that, you may have saved quite a few people from ending up with a bill twice as large as they’d imagined. Thank you!

  9. This article about debt management companies is very helpful. I, myself, do research first before engaging with any company or ventures I am interested on. These 5 guidelines on choosing the right partner in solving your dilemma are good points to consider. However, I do advise that when you do your research, make sure that your sources are reliable.

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