Debt Relief Companies Violate the Fair Debt Collections act?

Huffington Post has a great article on Debt Relief Companies and the Fair Debt Collections Act.

from the article:

This issue about out of SOL debt and debt relief companies is important for consumers to be aware of and informed about so they do not rush to settle or repay debt that is out of the Statute of Limitations (SOL) or time barred.

And the statute of limitations isn't so clear cut that anyone on the street can provide correct advice. It would be best to get the opinion of an attorney who is licensed in the state the consumer lives in to make sure which state statute applies in a specific and particular situation.

Consumers need appropriate disclosures and awareness before enrolling debt in a debt relief program so they can make an informed decision about how they really want to tackle the out of SOL debt. And this should be equally important for the debt relief company to be aware of as well. Out of SOL debt should be the lowest priority on repayment and set aside till all other debts are tackled first.

The biggest problem for credit counseling and debt settlement companies seems to be in blindly assisting the consumer to repay debt which would otherwise not be legally repayable. Or worse yet if the debt relief company represented to the consumer they debt was still legally repayable when it was not. That's where it seems a debt relief company could brush up against the same FDCPA problem the debt collector did.