How to Tell If an Attorney & Consolidate Debt Program Is Legitimate

Credit service organizations promising to erase bad credit, judgments and bankruptcies from credit reports may be making incomplete or inaccurate claims to attract your business. Rarely can a credit service organization erase a consumer's credit history without first completing a variety of steps, which still does not guarantee a clean credit report. Combat credit service companies making false claims by learning the ways in which you can check if an attorney and consolidate debt program is legitimate.

Instructions

1

Obtain proof of licensure. A fully licensed and legally operating attorney or debt consolidation company will hold a Certificate of Authority to do business within your state. Request a copy of the certificate or contact the company directly to ask if it is licensed to do business in your state.

2

Contact your state's attorney general's office by phone or mail. The Attorney General can verify if an attorney or debt consolidation company is licensed to operate in your state, as well as document consumer complaints. Ask if the Attorney General has investigated the company for illegal operating practices.

3

Contact the Better Business Bureau. Inquire about the attorney or debt consolidation's favorability rating among consumers. A high volume of complaints will produce a low rating, which may be indicative of poor operating practices. Read the company's report to learn the exact reasons for each consumer complaint.

4

Contact a consumer rights organization in your state. Inquire about recent and past investigations against the attorney or debt consolidation company, as well as consumer complaints of abuse and low quality financial education and counseling services. Go to Consumer Action's website or call the Consumer Action Hotline at 415-777-9635 to file a complaint or find a consumer rights organization near you.

5

Ask the attorney or debt consolidation company if it is a member of the National Association of Certified Credit Counselors (NACCC). Members of the association are subject to strict compliance rules and frequent checks. The National Foundation of Credit Counseling is an alternative non-profit organization representing member agencies (see Resources). Contact the NACCC by phone at 800-388-2227 to confirm the attorney or debt consolidation company's membership with the organization.