Many Debt Relief Companies Charge Illegal Fees
Whether they call themselves "Debt Settlement," "Debt Management," or some other name, they all need to be licensed to offer their services in Kansas. Unfortunately, many of these companies do not bother getting the license. When these companies operate illegally, they can harm Kansans in a number or ways:
- They charge thousands of dollars in illegal fees
- Many of these companies tell their clients to stop paying their bills
- Many of these companies charge thousands in up front fees, even though they know most people cannot finish the program
We consistently see people who have paid thousands of dollars for the "privilege" of paying their debt. But you have to give these companies credit for one thing, they are great at deceiving people with their marketing. Regardless of their claims, one thing is certain: the true cost of these "services" speaks much louder than the these companies' marketing campaigns.
You Have Rights Under Kansas Law
The Kansas Credit Services Organization Act allows a registered company to charge $50 for a one-time consultation fee and a maintenance fee of $20 a month--or $5 a month for each creditor listed in your debt management plan.
Despite this law, we consistently meet Kansans who paid thousands of dollars to debt settlement companies only to find that every penny of what they paid went to the debt settlement company and none of it went to their creditors.
If you are paying more than $20 per month in fees to an unregistered debt relief company, your rights under Kansas law are being violated.
What's The Harm?
These illegally operating debt relief companies can harm you in a variety of ways. First, you can't get out of debt when you are giving these unethical companies thousands of dollars in illegal fees.
Second, and worst of all, some of these companies advise you to stop paying your bills in an effort to scare your creditors into reducing your balance. What these companies don't tell you is that their tactics are completely illegal in Kansas, and your credit may be ruined in the process.
Many of these companies will not tell you about the possible tax implications, and that your creditor is not obligated to accept their offer. So after years of threatening collections calls and outrageous fees, you could be left holding the bag.
Why would companies that are supposedly in your corner do such things? Simple, because you are making them rich. But it can all end now.
We Can Help
The good news is that if you have been led astray by the false promises of one of these unregistered companies, we can help. Kansas law gives you, the consumer, powerful remedies to go after these companies and get your money back.
How Much Does This Cost You?
It won't cost you anything to get started. We provide a free initial consultation, and we will represent you in this matter on a contingent basis. That is just a fancy way of saying that we don't get paid until you get paid.