FTC Study Shows Less Than 10% of Debt Settlements are Successful
Wednesday, 05 May 2010 11:13It’s not unheard of that an attempt to reconfigure debt with a debt settlement program can fail. But recently the federal government has found that some debt settlement firms are being accused of “fraudulent, abusive or deceptive practices” that end up leaving consumers not only with unresolved debts, but with additional debts that further their financial difficulties. Furthermore, less than 10% of debt settlement programs are successful.
This study was conducted by the Government Accounting office sending representatives to pose as consumers, interview industry stakeholders and review legal actions at the federal and state levels.
The studies found that these fraudulent practices included:
- Fee collection prior to settling consumer debt
- Advising consumers to stop paying current creditors
- Give consumer false information about the success of debt settlement programs
- Suggesting that debt settlement is linked to government programs
The ironic thing about that last point there is that the government does actually provide a debt settlement service in the form of bankruptcy protection, (though this is not what the debt settlement companies mean when they imply their services are backed by government entities).
If you need real help in settling your debt, (with well more than a 10% success rate), call the experienced attorneys at Legal Helpers for a free bankruptcy evaluation now. Dial 800-260-1402 and start getting your life back today.




