Reputable debt consolidation companies

 I'm not certain if this is the correct place to ask this, but I
noticed past threads on this topic in misc.consumers*.

I am trying to help a friend think about debt consolidation.  I'm
running into a problem, though, and that is that searching for debt
consolidation companies online turns up a lot of rather fishy looking
enterprises.  I'm suspecting that a lot of these companies are
predatory and of questionable legality (or worse).

Does anyone know of a website where I could find reliable information
about debt consolidation companies?  The Better Business Bureau's site
was of no help whatsoever.  I know she can get debt consolidation
services through reputable major banks (e.g., BofA, Wells Fargo), but
I also guess that there deals may not be as competitive as companies
that specialize in DC.


Thanks,
Kevin

 
Start with your friend's current bank or credit union.  Expand to other local
banks and credit unions.

Another place to start is your local Consumer Credit Counseling Service
(http://www.cccservices.com/ ).

"Debt consolidation" is not magic, though it is only part of the picture.  That
part of it is simply finding a loan at the lowest possible interest rate and
best repayment terms, so you can pay off your higher-interest debt with the
proceeds.  Your friend may need help getting into a position to qualify for such
a loan or to find a willing lender; that is where CCCS or similar may help.

 
On Wed, 23 Jan 2008 16:19:43 -0800, "John Weiss"


such

Just a comment.  Years ago I got in over my head with CC debt due to
an accident.  I lost my job and became legally disabled after
considerable legal hassles.  Of course I was being hounded by debt
collectors and all of the usual hassles, but with no income and
medical bills up the wazoo, I could not pay this debt no matter how
hard I wanted to.  Later on, I got on disability, and wanted to try to
pay this off, but the interest had nearly tripled the amount and I saw
it would be impossible to ever get caught up on the little money I
got.

I saw one of these debt consolidation ads on tv, went to their
website, and applied.  I had to fill out a long detailed form on the
web, with lots of personal info.  I filled everything out as requested
and made sure it was all accurate and correct.  I received an email
telling me I was accepted and would be contacted soon by phone.  I got
the phone call, had to answer personal questions which were recorded
on the phone.  This included spelling my name, address, repeating my
SS#, etc.  They told me that everything was fine, and I would be
required to pay a monthly amount for x amount of years, and would be
charged a small fee of I think it was $8.00 a month.  I realized that
what they wanted was still more than I was able to pay per month, so I
asked what else they could do.  They said they could lengthen the
period, but it would cost me more for their services, and said that
under the circumstances, bankruptcy was another consideration.  He
said that they would write up several alternate plans, and mail them
to me.  

At least a month went by before I finally got something in the mail
from them.  But rather than getting some alternate plans to choose
from, I got a bill for their services and my first months payment.
What they wanted was almost three times what I originally was told.
Instead of $8.00 a month, they wanted $40 a month, plus they wanted me
to pay a couple hundred dollars for applying to use their services.
That's when I noticed on the envelope that the mail had been addressed
to the wrong mailing address, and went thru numerous post offices
before finally getting to me.  Looking more closely at this thing,
they not only had my address wrong, but my last name was spelled
wrong, my SS# was wrong, and several other errors.

I phoned them and told them to cancel their services because this is
not what I agreed to.  They told me they could not cancel it until I
paid their application fee, and first payment and there were a few
other things, which amounted to nearly $500.  They they old me that
this would be a breach of contact and that I would be penalized....
blah blah blah.....  Thats when I got angry and told them I refused to
pay them anything, the case was closed, and I hung up.  They called me
back and threatened to sue me if I refused to pay.  This was followed
by a threatening letter.  

It just happened that at that time, a friend of mine was dating a
lawyer.  I had told him about this and he mentioned it to his lawyer
friend.  She told him to send me over.  I went there, she took one
look at it and said "this is bullshit.  This is not even addressed to
you" (referring to the wrong last name spelling, incorrect address and
SS#).  She typed up a quick letter telling them that the person they
are billing does not exist, based on the last name spelling, etc....,
and if they continued to harass me, they would be sued for fraud,
harassment, and other things.  She handed me the envelope, told me to
put a stamp on it and toss it in the mail.  She did not charge me
anything, but asked me to help her by taking a few boxes of old
paperwork to her basement.  I mailed the letter and a week later I got
a notice that my account had been closed, but as they put it *I
provided false and incorrect information*, and thus they would not
handle my services.

What I am saying is DO NOT trust these companies, and if you do want
to go with them, check them out first.  Use the BBB and other
organizations.

This company I dealt with turned out to have several bad marks against
them in BBB records, and shortly after they went out of business.
(Actually they probably just changed to another business name).