New Mexico Debt Settlement Scam Lawyers

If you’re struggling with debt and looking for relief, you’re not alone. Many people find themselves overwhelmed by credit card bills, medical expenses, or personal loans. Unfortunately, financial stress can make people vulnerable to scams, especially debt settlement scams that promise fast, easy solutions but end up making matters worse. At Feferman, Warren & Mattison, we help consumers fight back. If you believe you’ve been taken advantage of by a debt relief company or credit counseling service, our New Mexico debt settlement scam lawyers are here to help you understand your rights and options under the law.

What is a Debt Settlement Scam?

Debt settlement scams typically involve companies or individuals who claim they can eliminate or significantly reduce your debt, often for a fee. These companies advertise aggressively on television, radio, and online platforms. They often promise to negotiate with creditors on your behalf and tell you to stop making payments directly to your lenders. Instead, you are usually instructed to send money to the debt settlement company while they “negotiate” your debts.

In reality, many of these companies don’t deliver what they promise. Some never contact your creditors. Others may settle one or two accounts while allowing the rest to fall into default, causing your credit score to plummet and opening you up to lawsuits, wage garnishments, or bank levies. In the worst cases, these companies simply disappear after collecting thousands of dollars in fees.

Under the Federal Trade Commission’s Telemarketing Sales Rule, it is illegal for debt settlement companies that sell their services by phone to charge fees before actually settling or reducing a consumer’s debt. Despite this, many businesses still use deceptive practices to get around the law or operate entirely outside it. New Mexico also has strong consumer protection statutes, including the Unfair Practices Act, that prohibit false or misleading representations. Some warning signs of a scam include the following:

• Guarantees to eliminate your debt quickly
• Claims of a “special relationship” with creditors
• Pressure to pay upfront fees before any services are provided
• Advising you to stop communicating with your creditors
• Failure to provide clear, written contracts

Legitimate debt relief services are upfront about the risks and outcomes involved. Scammers, on the other hand, rely on high-pressure tactics and misinformation to lure vulnerable consumers into handing over money.

How Do I Know If I’m a Victim?

If you’ve paid a company for debt relief services but haven’t seen any results, you may already be a victim. The consequences of falling into one of these traps can be serious. In some cases, consumers who trusted these companies ended up in worse financial shape than when they started–deeper in debt, with severely damaged credit, and facing collection lawsuits. Ask yourself the following questions:

• Did the company promise guaranteed results, like reducing your debt by a specific percentage?
• Were you told to stop paying your creditors and instead send money to the settlement company?
• Have your creditors continued to contact you or filed lawsuits, even after you began making payments to the debt settlement company?
• Were you charged upfront fees before any debts were resolved?
• Have you been unable to get clear answers or updates from the company?

If you answered yes to one or more of these questions, it’s time to take a closer look. Keep all records of your interactions with the company, including emails, letters, payment receipts, and any contracts or marketing materials. These documents may be critical if you need to pursue legal action.

In many cases, victims of these schemes may be entitled to compensation or debt relief under both state and federal laws. However, taking action quickly is important. Time limits may apply under New Mexico’s Unfair Practices Act and other consumer protection laws.

What Should I Do?

If you suspect you’ve been scammed by a debt settlement company, don’t wait. The longer you delay, the more damage may be done to your credit, your finances, and your peace of mind. At Feferman, Warren & Mattison, we offer legal help for consumers who’ve been misled, overcharged, or harmed by deceptive debt relief companies. We’ve spent decades fighting for the rights of New Mexicans who have been targeted by fraudulent business practices. Here are the steps you should take:

1. Gather all relevant documents: Compile every piece of paperwork or electronic communication related to the company. Contracts, payment records, emails, and voicemails can all serve as evidence in your case.
2. Check for lawsuits or collection activity: If you’ve been sued by a creditor or are receiving threatening calls from collectors, legal intervention may be necessary. Our team can review your case and help determine whether the debt is even valid.
3. Contact a New Mexico consumer attorney: Legal counsel is the most effective way to assert your rights and potentially recover money lost to a scam. Our attorneys will fight to hold deceptive businesses accountable. In many cases, we can help you recover money paid to fraudulent debt settlement companies, stop creditor harassment or collection lawsuits, and repair damage caused by false or misleading advice.

Contact Our Albuquerque Debt Settlement Scam Lawyers

You don’t have to deal with this alone. If you’ve been the victim of a debt settlement scam, the lawyers at Feferman, Warren & Mattison are ready to help. Contact us today for a confidential consultation and let us help you take back control of your finances with the legal tools and guidance you deserve.