Debt-relief Pitches Raise Consumer Concerns

Debt settlement programs' advertisements are making their way into the mailboxes of more consumers, and a new report suggests that it may be necessary to read the fine print.

The mail can often look like an official correspondence from a bank or a credit card company, but many consumers don't know that these services can be costly.

A new report suggests consumers should be wary of new deals that claim to be government programs, according to the Philadelphia Inquirer. The offers promise relief but can cost an average of $800 to $2,000 and cut little or no debt.

"I keep hearing my father say 'If it sounds too good to be true, it probably is,'" Mark Mandel, a DuPont employee, told the Inquirer. "Every time I turn around it seems like somebody else is telling me that he's been 'approved' for a 'Consumer Debt Relief' stimulus program or a 'U.S. Homeowner Affordability and Stability Package.'"

Aggressive brokers are one of the biggest culprits, the new source says. As many debt relief specialists pay commissions for clients that are enrolled in the programs.

New FTC rules are taking effect that aim to reduce telemarketing and advertising; however, whether these new regulations will bring results is yet to be seen.