FAQ > Consumer Protection FAQs > What are the risks of debt relief programs?

Frequently Asked Questions

Answers

What are the risks of debt relief programs?
Some of these programs do not comply with state or federal law and may charge you hundreds or thousands of dollars before doing any real work, even though federal regulations prohibit them from charging advance fees before providing any services. Additionally, some services may tell you to stop paying your creditors and promise to pay them on your behalf. Be aware that you still are obligated to pay your creditors during this time. Any time you stop making payments to your creditors, you risk damaging your credit rating and owing more in late fees and interest.