Trisha Connors is licensed
to practice law in California,
New York and New Jersey.

Our areas of practice include:

Bankruptcy, Fraud by Debt
Settlement Companies,
Debt Collection Abuse,
Fair Credit Reporting,
and Lemon Laws.

San Jose, California

V 408-354-2502
C 201-336-4348

 

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up Now for Email Updates
For Email Marketing you can trust

login
Map
Tuesday
Jan242012

MOST DEBT SETTLEMENT COMPANIES ARE ILLEGAL IN NJ

Debt settlement companies promise to settle your debts for "pennies on the dollar", but beware if the offer sounds too good to be true.  I have worked with many consumers who have to file bankruptcy after attempting to work with a for-profit debt settlement company.  The debt settlement company promises that if you make "payments" to a savings account instead of to your creditors, you will accumulate enough savings to settle your debts for pennies on the dollar.  What they don't tell you, however, is that the first 6-12 months of "savings" is actually the debt settlement company's fees!

By the time a consumer pays the fees and starts saving, he has been sued, had his wages garnished or bank accounts frozen by creditors.  Also, the late fees and interest charges accrued while he stopped making payments make it impossible for him to get out of the debt without bankruptcy. 

New Jersey recognizes the outrageous fees and unsuccessful outcomes of most debt settlement plans and outlaws for-profit debt settlement companies.  New Jersey's law makes it easier for me and other attorneys to obtain refunds for consumers harmed by these practices.  However, Assemblywoman Grace Spencer (D-Newark) has introduced legislation to make it easier for these companies to operate in New Jersey and fleece consumers.  I urge you to contact Assemblywoman Spencer and urge her to withdraw her bill and keep these companies out of our state. 

If you have been harmed by a debt settlement company, chances are I can help.  Call my office to discuss your options.  I offer free consultations. 

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (1)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Response: indexing service
    Neat Web site, Stick to the beneficial work. Appreciate it!

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
« YOU USUALLY CAN KEEP YOUR HOME IN A BANKRUPTCY | Main | BANKRUPTCY MAY BE THE FRESH START YOU NEED »