Can a debt elimination company really wipe out my credit card bills?
Q: I have $21,000 in credit card debt. I’m considering a debt elimination program from a company that says it uses contract law against card issuers. This company assumes your debt and knowingly sends your payment late, inserting new terms in the envelope telling the credit card company that if it cashes the check, it is agreeing to those terms. Then it charges the card companies violation fees that eventually wipe out your debt. Is that legitimate?—Rose, Tennessee Lynn Brenner replies: No! You’ve described a blatant scam. Unfortunately, it’s one of many—the debt settlement business is riddled with shady operators who leave consumers in worse shape than before. Typically, you’re told to stop making even minimum payments and instead put money into an account that pays the debt settlement firm while the firm tries to persuade your creditors to accept less than you owe. Meanwhile, your interest charges and late payment fees keep rising, and collection agencies keep calling you. In the end
