Finance

How to Verify a Debt Relief Company

The combination of the terrible global pandemic and increasing inflation left many Americans struggling with lots of debts. According to the Federal Reserve Bank of New York, household debt in the United States increased by 2.2% ($351 billion), reaching $ 16.51 trillion by the last quarter of 2022. If you are struggling with bad debt, you might be desperate to find a way out. 

Fortunately, numerous legitimate debt relief programs such as those at Freedom Debt Relief can help you reduce and ultimately clear your debts. However, do you remember the old saying “trust but verify”? It is excellent advice when selecting a debt settlement company. Here is a guide on how to verify a debt relief company. 

It Must be Accredited

Go for a company, which is accredited by renowned and reputable organizations such as the International Association of Professional Debt Arbitrators (IAPDA) or the American Fair Credit Council (AFCC). The organizations are hailed for their strict membership standards. This will ensure that you are partnering with a reputable company. You can access the company’s accreditation details on their websites.

Services Provided

Find out what services the debt relief organization offers. Some companies only offer debt settlement services, while others offer credit counseling and debt management services. Organizations offering a combination of services will offer comprehensive solutions for your financial crisis. But when you need one specific service, working with a company specializing only in that service will help align with your unique needs.

Check the Company’s History and Reputation

If you wonder, “Is Freedom Debt Relief legitimate?” Yes, it is. It is the founding member of the AFCC and a renowned member of various organizations dedicated to holding legitimate debt relief organizations to high standards.

You can check out the company’s reputation and reviews from previous customers on its website or review websites such as Consumer Affairs and Yelp. You can also check out the Consumer Financial Protection Bureau to confirm whether there are any complaints filed against your prospective company and how the company handled them. 

Fees

Ensure that your debt relief organization summarizes the expected expenses and charges before partnering with them. Be careful of companies that charge upfront fees. Companies such as Freedom Debt Relief request payment only after a successful transaction. 

This way, you can analyze the quality of the services offered by the company before making payments. You can also compare various company fees and choose a budget that fits you. 

Be sure to ask questions and seek clarifications to ensure that there are no hidden charges before signing up. You should also know the possible consequences of canceling the services before loan settlement. 

Legal Compliance

Your prospective debt relief company should comply with the state and federal laws and regulations governing such companies. Such laws include Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rules. You can do this by checking out the company in the NASBA database. Do not partner with any company that does not comply with your state’s laws and regulations. 

Access to a Specialist 

It is crucial to have a free consultation session with a debt relief specialist and find out about the debt relief program, what you need, how long the process would take, and how much money you would save by partnering with them. If the specialist seems to withhold some information or their answers do not satisfy you, move on to another company. 

Now that you know how to verify a debt relief company, you can find the perfect partner for your debt relief needs. Remember that no two debt relief companies are the same. You must therefore find out the type of debt relief solutions your prospective company offers and choose the work that best works for you. The need for enough due diligence cannot be overstated. You do not want to seek debt relief services that will get you deeper into debt.

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