Reputable Debt Settlement

Question:

I am looking for a legal and reliable debt consolidation company. I live in California. Any recommendations? Are these services effective?

Answer:

Yes, debt resolution / consolidation / negotiation can be an effective means to resolve unsecured debt. Just as each consumer and their circumstances are different, different creditors negotiate debt differently, so it is impossible to say whether debt negotiation will be 100% effective for everyone in all situations. I recommend you contact several debt resolution providers and speak with their representatives about your circumstances.

Before you do, here are three tips to help you choose an effective debt resolution provider.

TASC
The first step to finding a reputable debt settlement company is to consult with The Association of Settlement Companies (TASC) Web site.

TASC is a non-profit organization with the goal to "to bring professionals, legislators, and consumers together to promote good practice in the debt settlement industry," as stated on its home page. This organization was created in response to the lack of federal regulation of the standards and practices of the debt settlement / negotiation industry. Any debt settlement firm that seeks TASC membership must comply with standards that require members to provide consumers full disclosure of not only the pros of debt settlement, but also the cons.

TASC enforces these rules on members by performing audits. For example, TASC "mystery shops" its members. Mystery shopping is where TASC contacts a member and acts as a consumer. TASC grades the member on how it represents its services. Some debt settlement companies have been barred from TASC for failing to meet the requirements of proper disclosure not only on paper, but also on the telephone (which is the most common way consumers enroll).

There are different tiers to TASC membership. For instance, an accredited member is one that has had its company audited completely, which includes audit of at least two years of financial results.

TASC is highly involved in working with state legislators to promote regulation of the debt settlement industry in order help protect consumers from "fly by night" companies that are only concerned with making a short-term profit, and not resolving consumers' debts.

IAPDA
The second step to finding an effective debt settlement / resolution company is to determine if the company is an International Association of Professional Debt Arbitrators (IAPDA) member. The IAPDA requires that its members have their debt consultants and account executives pass a certification test that requires them to understand and communicate the pros and cons of debt settlement to their clients.

Longevity
Finally, learn how long the firm has been in business. A long history is good because a company with long history will have experienced underwriters and negotiators who have demonstrated an ability to negotiate effective settlements with a variety of creditors.

For more information about debt settlement / negotiation and other debt resolution options, see What Are My Debt Consolidation Options?

I hope this information helps you Find. Learn & Save.

Best,
Bill
Bills.com

Also, make sure to get a free financial health check-up with Bills IQ!