Consumer Debt Relief and Associates, Inc.

Typically these companies advertise via websites or on the radio that they are able to settle debts for far less than the amount owed, can stop creditors calls, and that the process is more effective than those provided by Credit Counseling Services. Complainants allege about similar offers: that creditors continue to harrass them, fees and interest continue to accrue, their credit is worse than before, that creditors were not contacted, and creditors sue for payment. Specifically, these companies rely on negotiating with the creditors for a lump sum payment, which generally requires the consumer to withhold payments for an extended period of time. Also, the fees for these services are generally required to be paid in advance before any services are performed. It is during this time that the creditors will likely take steps to secure payment, such as; telephone calls, derogatory credit reporting, arbitrations or law suits. For the foregoing reasons, we advise caution in dealing with debt negotiation/settlement companies.