Being in debt is a difficult situation faced by many people. Unfortunately, it can be made much worse when debtors are targeted by unscrupulous scammers posing as debt relief specialists who make matters worse. The Federal Trade Commission (FTC) brought legal action against United Debt Counselors, LLC, a company which exaggerated the money people could save by using their services and also charged illegal upfront fees in violation of federal rules that prohibit debt settlement companies from charging a fee until the company actually renegotiates, reduces or alters the terms of the consumer’s debt.  As a part of its settlement with the Federal Trade Commission (FTC), United Debt Counselors, LLC paid money to the FTC which is returning the funds to victims of the scam.  For more information about the refund and how to claim your refund if you were among the victims of this particular scammer, go to the tab marked FTC scam refunds in the middle of the first page of


There are many debt relief companies that may be able to help people with debt problems, however, credit counseling services may be a better and more economical choice for many people.  While there are legitimate debt relief companies, there also are many scammers who will take your money and provide little, if anything, for your payment.  It is important to remember that it is illegal for a debt relief company to charge you a fee prior to settling your debts so any company that requires you to pay such a fee is  scammer and should be avoided.

If you are considering using a debt relief company, you should check with your state’s Attorney General and your state’s consumer protection agency to see if there are any consumer complaints against them.  Finally, for detailed information about alternatives to consider if you are having debt problems, go to the FTC’s website at

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