Debt relief companies capitalize on borrowers who fall behind on their loans. Whether it’s credit cards, auto loans or student loans, the promise to help people with their debt is a siren call for people who have lost control of it.
Student loan debt relief companies are plying an especially insidious trade. They charge borrowers fees to enroll in federal consolidation, forgiveness and repayment plans that run to hundreds or even thousands of dollars. Often borrowers realize too late that they can sign up for those programs for free through their loan servicers.
In theory, selling debt relief is legal and has been compared to income tax preparation services. But debt relief companies often cross a line and violate key consumer protecti…
Read the full article at: https://www.thestreet.com/story/13676831/1/student-loan-debt-relief-companies-capitalize-on-borrower-confusion.html