Complaints by consumers about “debt settlement” and “debt management” companies have skyrocketed in recent years. Many of these companies market themselves as a viable alternative to bankruptcy. Often, they propose to set up a debt settlement payment plan. Under the plan, the consumer makes a payment each payday. The company proposes to hold the funds until a settlement fund is accumulated, and then settle out the consumer’s debts for pennies on the dollar.

Sounds great, right? Unfortunately, most of these companies manage to keep most of the funds for themselves. The consumer’s debts continue to fall further into default, and eventually lawsuits and harassment cause the plan to fail. The debt settlement company is the only one who profits.

The State of Georgia legislature recognized that this practice does not help, but only hurts those in need of relief. It passed a law which makes most debt settlement plans illegal. If you feel you have been victimized by one of these companies, call Morgan & Morgan for a consultation. You may be entitled to recover the funds you paid into the plan, as well as damages and attorney fees.