Debt Settlement Program Cautions Debt Consolidation Candidates via Twitter of Unfair BBB Ratings

Online, February 9, 2010 (Newswire.com) - San Diego, CA -- February 9, 2010 - - After funneling nearly $800 billion into a federal stimulus plan, millions of U.S. households and small businesses buried in debt remain destitute of financial relief. Thankfully, a debt settlement program has been playing an important role in bailing out people from financial ruin. For debtors whose expenses and debt payments exceed their monthly income, the debt relief solution has been an exceptional lifeline over bankruptcy and consolidation via credit counseling. But, as the bankruptcy alternative ascends in popularity, so do the concerns.

Despite the All-American resourcefulness to avoid bankruptcy, interest in traditional, non-profit credit counseling programs, is weaning. At issue is the profiteering. Credit counselors have been questioned for charging fees called voluntary contributions and getting creditor kick backs known as fair share. Yet, the lackluster success manifests from their debt consolidation programs.

The programs, which provide interest rate reduction and can take a debtor 5 or more years to complete, have rendered temporary relief to most. Yet, the debt consolidation has done minor reduction to their outstanding debts. Plus, debtors with financial afflictions like unemployment have succumbed to a steep dropout rate. A seceding number have found greater solace in the debt elimination services of a debt settlement program.

In contrast, most consumers in debt settlement programs get out of debt in 36 months or less. That's far less time than debt consolidation.

As asserted by Eric Santacruz, Vice President of Debt Free League, "Compared to debt consolidation, debt settlement is far superior because a debt negotiation satisfies the total outstanding debt and the debtor pays much less than the full balance."

Santacruz, who manages a debt settlement program entitled, the National Debt Relief Stimulus Plan, corroborates his statement. He directs naysayers to see considerable proof at Debt Free League.com.

At the site, a Bank of America debt settlement letter confirms that the program reached a $4,583.00 settlement for a customer on an outstanding $17,585.17 credit card balance.
Aside from its significant debt relief virtues, the debt settlement industry has been under attack.

Today, the debt settlement industry has grown to over 2,000 firms from only a few hundred several years ago. Some of the new and inexperienced players migrated from the mortgage industry. And numerous complaints have been filed against debt settlement companies for charging excessive fees and failing to reduce consumer's debts as promised.

The Better Business Bureau, which has received complaints, has taken notice. They believe that the inherent nature of debt settlement companies' products/services is likely to generate trade practice concerns and/or a high level of customer dissatisfaction.

The unfair bias has even landed D- and F ratings even on legitimate debt settlement companies. Only a handful of BBB-paying members whose ratings were grandfathered prior to the present rating system, have seen better ratings.

An astonished Santacruz, has complained to the Better Business Bureau about the F rating on his company's Business Reliability Report. Oddly, although his company has an excellent history with zero customer complaints, they refused to improve the rating.

Equally puzzling, Santacruz found many companies from other industries that have a bad history of customer complaints, yet received an A or B rating. He aims to create public awareness.
Although Debt Free League has an online presence on Facebook, MySpace, and Youtube, Santacruz went on Twitter to tweet about the unfairness.

"The derogatory BBB rating felt like paranormal activity since there hasn't been one customer complaint on Debt Free League in a 3-year reporting period. The report also erroneously states one employee although we're a complete debt settlement provider."

Debt Free League, which serves American consumers and small business owners on a national level, has employees spread through different departments, including New Enrollments, Underwriting, Client Services, and Debt Negotiations.

Also heading a Hispanic subsidiary, Libre de Deudas, Santacruz credits his teamwork for the dream work that has maximized customer satisfaction. Besides specializing in credit card debt reduction, business debt reduction, and medical debt reduction, the National Debt Relief Stimulus Plan is recognized for benefits unparalleled in the debt settlement industry:

• 100% money-back guarantee (due to cancellation within 30-days of enrolment)
• Assistance in helping prevent creditor harassment
• Reenrollment credit (up to 100% of fees previously paid)
• Lowest fees (one third less than 15% industry average)

As an ethical business executive, Santacruz applauds the Better Business Bureau's protectionism of consumers. However, he cautions, "Since the Better Business Bureau heavily influences the purchase of many consumer goods services, their reports need to ensure accuracy. The data also needs to avoid clouding public perception as to the legitimacy of a debt settlement program like ours."

As in any other industry, Santacruz reminds people who need to find effective debt relief, that there are both good and bad debt settlement companies. He exerts that well-rounded research in more than one area is a key element to properly identify the good apples from the bad ones.

"Business Reliability Reports aren't perfect. They caption readers that a rating does not guarantee reliability or performance and that what really matters is if the company has a bad history of customer complaints and/or unresolved complaints", he adds.