3/4/2011 10:27 AM (PST)

Prada, what is their pitch and what are the fees they are charging? Because of the abuse that the debt settlement industry has perpetrated on the public, the FTC rules enacted strict rules in October of 2010 to better protect consumers from debt settlement scammers and operators. There are hundreds of these companies still operating in spite of the new FTC rules, and before you buy into any sales pitches we would encourage you to read some articles about debt settlement that we have posted on our Facebook page, at www.la.bbb.org, and on the FTC website. Here are some for starters:

NEW LAWS GO INTO EFFECT TO FIGHT DECEPTIVE DEBT RELIEF:
http://www.la.bbb.org/GIReport.aspx?NewsID=295

DEBT SETTLEMENT INDUSTRY GETS ITS COMEUPPANCE FROM THE FTC
http://www.facebook.com/note.php?note_id=455365482194

WHAT THE FTC RECOMMENDS FOR SETTLING YOUR CREDIT CARD DEBTS:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre02.shtm

There are two BBB reports on the business:
http://www.bbb.org/charlotte/business-reviews/debt-negotiation-companies/legacy-debt-solutions-in-charlotte-nc-237322

http://www.bbb.org/tulsa/business-reviews/credit-and-debt-counseling/legacy-debt-solutions-in-tulsa-ok-38015387

Unfortunately, getting out of debt is no picnic and it's a shame that so many "cures" become worse than the disease.

3/15/2011 2:24 AM (PST)

Yes, I had to save one of my clients from them after their over eager sales person put her into a program that was designed to collect all of her money for a year and then bankrupt her. The sales person did not have the education or the experience to actually evaluate her situation and know she could never complete the program, but they were happy to present a payment plan and take her fees upfront. I would certainly stay away from them. Who knows if they are even still in business now that the new FTC laws banning their fee model have been in place for six months. You can read about my client's experience with Legacy Debt Solutions here... Based on their actions last year of almost driving a client of mine into Bankruptcy before I found out about it and stopped it. I would definitely warn anyone to steer clear of these guys. Their salespeople see dollar signs and not much else. If I had not got my client out of the program they would have literally taken all of her money inside of a year and then dropped her. There are much better options out there for consumers to look into. http://damonday.com/1017/legacy-debt-solutions-vs-credit-solutions/