Consumer Rights – Debt Settlement & Loan Modification Ripoffs

Consumer Rights

Debt Settlement & Loan Modification Ripoffs

NPR reported recently that “the credit reporting agency TransUnion says the rate of delinquent payments — 90 days late or more — has dropped to its lowest level in 17 years.” This same report stated that Americans are carrying less credit card debt and that there has been a sharp drop in delinquent payments because the banks have made it harder to get a credit card.This is great news, but this report had nothing to say about a larger problem: Many debt settlement and mortgage loan modification companies are taking advantage of credit strapped consumers.In the state of Washington, where we practice law, the pro-consumer Debt Adjusting Act, offers a strong avenue of relief for Washington consumers who have been duped by debt settlement and mortgage loan modification. Debt adjusting and loan modification companies doing business in Washington are mandated to limit their fee to 15% of the amount each installment submitted by the consumer to the debt adjusting and loan modification companies. These companies are also required to distribute at least 85% of each installment to the consumer’s creditors.It appears to be a widespread industry practice to ignore these and other requirements of the Debt Adjusting Act; however, consumers can use the Debt Adjusting Act to obtain a total refund of all fees (plus attorney fees) paid to companies who violate the Debt Adjusting Act.The Rosenberg Law Group, PLLC, our seattle law firm and Bellevue attorney Mark D. Walters, Walters Law Firm PLLC have joined forces to help consumers recover fees paid to unscrupulous debt settlement and mortgage loan modification companies.

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