FCAC warns Canadians about debt reduction promises

The Financial Consumer Agency of Canada has issued a consumer alert regarding companies that claim they can negotiate a deal to cut the amount of debt you must pay to creditors.

The alert is titled:

Debt Reduction Companies: Beware of  “Too Good to Be True” offers

The FCAC alert says in part:

This process is often called “debt reduction,” “debt settlement,” “debt relief” or “debt negotiation.”

“Unfortunately, people do not always see the benefits that debt reduction companies lead them to expect—and some people wind up even deeper in debt than they were before,” says FCAC Commissioner Ursula Menke. “If an offer to reduce your debts seems too good to be true, it probably is.”

You may see advertisements or get a telemarketing call offering you a quick and easy path out of debt.

The alert goes on to list for things to watch out for with debt reduction.

Read the full article here on the FCAC website.