Screening an Unscrupulous Debt Management Company
The many incidents of fraud by unscrupulous debt management companies should warn everyone who wants to engage in a third party enterprise. Given that a lot of people nowadays are finding solutions to their debt problems as latest statistics would show, some would like to pursue with their devilish desire and take advantage of the situation. They appear to be legitimate debt companies, but the truth is they prey with these indebted people and devour them whole. And while the government is making effort to eradicate this wrongdoing, one must be vigilant and be on guard.
So how can you be certain if whether or not you are engaging with the right organization? The following are basic guidelines a legitimate debt management company must follow:
First and foremost, the debt company must hold a consumer credit license, a directive under the Consumer Credit Act of 1974. This license is issued by the Office of the Fair Trading. Therefore, it is one of the main things you should be checking beforehand.
Second, there should be no pressure that you need take the offer when dealing with a licensed debt management company. The client must have the freedom to discern and gauge which, what and how things will work to his or her benefits.
Transparency is the third aspect. All pertinent information must be put into writing especially when it deals with financial aspects. A good debt company must imbibe transparency as one of its good business practices.
Fourth is that clients must have a 14-day allowance to think over whether to accept or refuse the offer. This is actually mandated by the law as part of the cancellation return and exchange policy, which every customer has the right to have.
Lastly, a debt company must have a competent complaints policy. Outlined processes on how grievances are reported, who to contact and what are the different escalation procedures must be clearly stated so clients may be guided accordingly should there be a need to complain.
Please do remember that finding solutions to debt problems should in no way end in another trouble by falling into the pit of these fraudsters. Simply know what things should be in proper places, what your rights are and what a debt company must do in the service of its clientele.