Can You Erase Credit Card Debt With ABC Loans?
Claims that ABC loans can be used to erase your credit card debt were widely advertised as credit debt became a huge problem due to economic uncertainty and tight money lending markets.
ABC Debt Relief, LLC was formed as a business in June 2007 as the economic crisis worsened and rising credit card interest rates led consumers to look for ways to eliminate or consolidate the debt from multiple credit card accounts into one lower payment each month.
There are many consumer complaints filed about various debt consolidation companies. In many cases, the problem is the lack of understanding by the consumer of how long and involved debt consolidation or debt settlement may take to resolve.
In other cases, it seems some of these consolidation companies focus on getting new business by highlighting the end result of a successful debt consolidation and do not fully explain the entire process.
Debt settlement takes time and many consumers did not realize it wasn't as simple as listing debts and finding immediate relief from financial problems and obligations.
While claiming that ABC loans can be used to eliminate debt, the commercials for the company did not mention that most credit accounts are not fully settled until after a full two years of consolidation effort.
Lenders are not quick to eliminate credit card debt through negotiation with the consumer or a company representing the consumer until it is clear the debt has no chance of being repaid in full.
Credit accounts must be well into delinquency before banks will negotiate for a settlement.
Even as television ads were telling consumers that ABC loans are ideal for eliminating debt, the consumer complaints about the company rose quickly. The website for the company claimed an affiliation with the Better Business Bureau (BBB) a recognized and reputable business organization.
The rating of the company at the BBB quickly fell as complaints poured in and potential customers calling the BBB were told this was not an accredited member of the organization.
Customer Service VS Contractual Obligations
The customer service representatives of ABC Debt Relief, LLC were quick to answer questions and explain the debt consolidation process. Many consumers signed up quickly with the company as a result of the excellent telephone sales experience of the customer service staff.
Other consumers took the time to read the written contractual agreement before signing up for debt relief. There was no guarantee that ABC consolidation loans eliminate debt.
Consumers were not promised anything at all in the written contract but were obligated by the contract to pay a percentage of the initial debt amount to ABC whether the consolidation was successful or not.
It is true that no company can promise to reduce or eliminate your credit card debt. However, most reputable organizations charge fees based on results rather than a flat percentage of your debt regardless of results.
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Finding a company you can trust to help you consolidate or eliminate credit card debt can be a frustrating experience. The promises that ABC debt consolidation loans eliminate credit card debt were full of over hyped advertising.
There have been a few reports by consumers who say the company was helpful but those are far outnumbered by those who say they paid thousands of dollars to this company and received no debt relief in the end.
If you are seeking debt relief, avoid companies with catchy names and check the consumer opinions online before signing up. Look for companies that have been in business for some time and have a clearly described process for helping consumers manage or solve their credit card problems.