Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Using caution when resolving debt

As many Texas residents may know, debt settlement might sound promising. However, unscrupulous companies may be taking advantage of a debtor's frustration and promising results they cannot provide. A major debt settlement company is facing an asset freeze along with an injunction halting the company's operation related to debt settlement representations.

The company charged fees upfront, something that is illegal. Promising to provide legal representation if it was needed, the debt settlement company collected legal fees without providing legal assistance. In light of this and the company's failure to reduce debtors' credit obligations, the Consumer Financial Protection Bureau took action.

A person who is looking for help in resolving debt may turn to an alternate debt settlement company. There are ways to access the company to see if it is reputable by being alert for warning signs. Unrealistic promises should be a red flag when looking at an advertisement or speaking to a company representative. Another indication that the company may be questionable is asking for fees before work is done. This is not realistic and outside the legal boundaries such companies are allowed. Speaking to a representative on the phone may provide insight. Since many are salespeople, legitimate questions might be left unanswered or glossed over. Being cautious when such signs are present might save problems later.

There are debt management companies that help clients work through their obligations. However, enrolling in such a program may make it difficult to make a fresh financial start. Talking to an attorney who is experienced in various forms of debt relief may help. In some cases, moving on after being overwhelmed by debt may involve exploring bankruptcy.

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions