Getting Legal Help if You Are a Victim of a Business Debt Relief Scam

What is a business debt relief scam?

A business debt relief scam is when a company promises to negotiate with your creditors to settle your debts or consolidate your loans. But it’s a scam and they don’t actually provide the services you paid for.

Some common signs you got scammed:

• They charged upfront fees before doing any work. This is illegal for debt settlement companies.
• They promised to make your debt go away or repair your credit. No one can legally remove accurate info from your credit report.
• You paid them, but they never contacted your creditors or provided any services.
• They pretended to be a nonprofit or part of the government.
• They pressured you to sign up quickly and wouldn’t answer all your questions.
• Their promises sounded too good to be true.

How can a lawyer help if you got scammed?

A lawyer can help in a bunch of ways if you paid for debt relief services that turned out to be a scam:

• Get your money back. The lawyer can send a demand letter asking for a refund. Or they can file a lawsuit to recover what you paid.
• Report the scam. The lawyer can report the scam to the FTC and attorneys general. Officials need to know about scams to shut them down.
• Fix your credit. If the scammers messed up your credit, a lawyer can get errors removed. They can also negotiate with creditors on your behalf to improve your credit score.
• Cancel contracts. The lawyer can cancel any contracts you signed with the scammers so they can’t keep charging you.
• Stop collections. If the scammers try to collect fake debts from you, the lawyer can stop it. They’ll tell collectors the debt is invalid and made up.
• Negotiate settlements. If the scam made your real debts worse, the lawyer can negotiate settlements with your creditors. They might agree to lower payoffs to resolve things.

Finding the right lawyer to help fight your debt relief scam

Not every lawyer has experience dealing with debt relief scams. Here are some tips to find the right one:

• Search for consumer protection lawyers. Look for lawyers that specialize in consumer rights, credit repair, and unfair business practices.
• Check with your state bar association. Many state bars have lawyer referral services or directories to browse.
• Search the National Association of Consumer Advocates. This association has a directory of lawyers experienced with consumer scams.
• Ask about fees upfront. A legitimate lawyer will be upfront about their fees and sign a contract.
• Avoid any guarantees. No lawyer can guarantee results or promise your credit will be fixed. Beware of too-good-to-be-true claims.
• Ask lots of questions. Interview lawyers before hiring one. Ask about their experience with debt relief scams.