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Print This StoryReport: Debt Settlement Companies Tell Lies About Eliminating Debt
POSTED: 10:47 am EDT July 29,
2009
UPDATED: 12:43 pm EDT July 30,
2009
CLEVELAND -- Debt settlement companies often make claims that they cannot deliver on, according to Consumer Reporter John Matarese.The Federal Trade Commission and USA Today said debt settlement companies' No. 1 lie is that they can eliminate all credit card debts.No. 2 is that the process will not affect your credit score, but it will.No. 3 is that the settlement will protect you from being sued.Matarese said the companies can't provide this type of protection.No. 4 is that it will not cost much.The average fee is about $2,000.No. 5 is that you will not have to worry about taxes. Matarese said be sure to keep in mind that settled debts count as income at tax time.
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