Individuals who are facing financial issues may explore a variety of ways to discharge their debt. There are many debt relief options available, but unfortunately, some of those options may do more to hurt a consumer than help. If Tennessee residents fall victim to a debt relief scam, their finances could be even more negatively affected.
It was recently reported that the Consumer Financial Protection Bureau is taking action against a group offering false promises to individuals seeking debt help. Reports stated that the group would offer interested parties access to attorneys that would supposedly help them get their financial affairs back on track. The group would also charge considerable fees upfront, and approximately $67 million was collected from at least 21,000 people.
The group often failed to provide the legal representation and other services promised, essentially swindling debt-ridden individuals out of more money. The group also reportedly told individuals to send them a monthly payment rather than paying their creditors, which led to many individuals facing legal issues, collections calls and other negative outcomes. The Consumer Financial Protection Bureau has filed a lawsuit against the group in hopes of putting an end to the relief scam.
Because many individuals may need true debt relief help, it can be devastating to be cheated out of more money due to a scam. Therefore, Tennessee residents may want to consider other options that are proven to be reliable. Chapter 7 and Chapter 13 bankruptcy are processes that may be able to help interested parties reduce or eliminate their debt, and gaining more knowledge on these options may help parties avoid an unreliable scheme.
Source: consumeraffairs.com, "Debt-relief scheme lands World Law Group in federal hot water", James Limbach, Sept. 17, 2015