3/30/2010 8:26 AM (PST)

In general, the BBB's history overall with debt settlement companies has not been good. Most people who complain about these companies state that their debts weren't negotiated, they were told to stop making payments, and the result is that they're in worse shape than when they started. Many are sued and are forced to file bankruptcy to rid themselves of the lawsuits. Debt settlement companies have a good sales pitch that makes the program seem like a no brainer but unfortunately it's a mirage. This industry is rife with companies using predatory fee models and deceptive advertising. Don't fall for the ads that are all over television: they are produced by third party lead generators and sold to multiple debt settlement operators.

The Federal Trade Commission does not look favorably debt settlement operators. The FTC has scrutinized the fee schedules commonly used by these settlement companies, in particular the timing of fees (usually front end loaded) and the high level of these fees. A good roundup of the recent FTC public forums, investigations, and Notice of Proposed Rulemaking on debt settlement/negotiation can be found at:

http://www.venable.com/ftc-hosts-public-forum-on-proposed-debt-relief-amendments-to-the-telemarketing-sales-rule/

Debt settlement is a topic the BBB of the Southland has posted about on our Facebook page:
http://www.facebook.com/pages/BBB-of-the-Southland/117568537756

Specifically, check out the "BBB Criteria for Evaluating Debt Settlement Companies" posted on our Facebook page on October 28, 2009 (click on the Notes tab and then scroll down to October 2009). These criteria for evaluating debt settlement companies are very stringent because of the rampant abuse and predatory fee models that are so widely used in this industry. That being said, we know there are some debt settlement companies out there who are reputable and who deal fairly with their customers.

Use the Google box that is on the main Ask The Community page and search for "debt settlement". You'll get lots of previous responses about this topic.

If you haven't done so already I would start your journey with a call to a reputable nonprofit credit counseling agency that will identify and explain your options. The counseling session will be FREE. The National Foundation for Credit Counseling's direct agency referral number is 800-388-2227. This will connect you to a reputable, accredited agency in your area.

3/30/2010 11:13 AM (PST)

So you are telling me it is ok. There are no hidden stuff and these Company's are for real? Thanks for all your infomration. I need all the help I can get.

4/1/2010 4:34 PM (PST)

Fast track away your money....you were warned.

4/2/2010 11:03 AM (PST)

Why did you use this Company???? What did they do and what if anything do I need to know??? I will await your reply. What state do you live in??

4/2/2010 11:04 AM (PST)

Julius M. did you use this Company??? What did they do and what if anything do I need to know???? I will await your reply. What state do you live in??

4/5/2010 1:42 PM (PST)

There are two aspects of regulation that figure into your question. One is state regulation of the debt settlement industry itself. Several states forbid "for profit" debt settlement companies, but Florida is not one of these. The state regulatory environment is a complex patchwork of laws and will change a lot more in the next couple years. Florida, California and Texas have the most debt settlement companies.

The other aspect that makes Florida a hospitable environment for debt settlement is its consumer-friendly state collection laws and state protections for wages and homes (e.g., garnishment and homestead laws). These protections create better incentives for creditors to enter into settlements, and this, along with Florida's huge population, makes for a target rich environment.

9/29/2010 4:48 PM (PST)

I've been contacted by Fast Track Debt Relief today. I've looked at some of your questions - which are the same as I have.
I've had some bad experience with a consolidation debt company a couple of years ago. I don't think they really did me any good at all. They probably hurt me more than helped me in some ways.
Looking at some of the comments on here, I asked them why they don't show up with the BBB. They are listed with TASC which seems to have more info regarding these kind of companies. I'm going to do more research before I decide or make further steps with them. I want to know I'm doing the right thing.
If anyone has used Fast Track for about a year and have seen things improving and they are doing what they said they would - getting you out of debt on the accounts you selected - within 2 years - PLEASE let us hear from you.