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20 Best Debt Settlement Companies Ranked By Ratings & Reviews (2024)

Understanding Predatory Lending & Interest Rate Caps in the U.S.

In the U.S., interest rate caps—especially when it comes to protecting consumers from predatory lending—are largely regulated at the state level. This means that the maximum interest rates lenders can charge vary depending on which state you live in and the type of loan we’re taking out. Let’s break down how this works across different states.

What Qualifies as a “Predatory Loan”?

First, let’s compare a traditional loan you would get from a bank versus a “predatory loan” you would get from an alternative lender:

Feature Traditional Bank Loan Predatory Loan
Interest Rate Low to moderate (typically 3% to 12% APR) Very high (can exceed 50% APR, sometimes 300%+)
Loan Terms Fixed terms (usually 1 to 30 years) Short terms (often 2 weeks to a few months)
Repayment Structure Monthly payments, often with amortization Lump-sum payment or frequent, high payments
Fees and Charges Transparent, disclosed upfront Hidden fees, high fees, or penalties
Borrower Qualification Strict requirements (credit score, income, etc.) Minimal qualification (often no credit check at all)
Regulatory Oversight Highly regulated by federal and state laws Often operates in regulatory gray areas
Purpose of Loan Typically for major purchases (homes, cars, education) Often for emergency or short-term needs
Impact on Credit Score Positive impact if paid on time, reported to credit bureaus Negative impact, often not reported positively to credit bureaus
Borrower Rights Strong consumer protections, recourse available Limited recourse, predatory practices common
Rollover/Renewal Generally not allowed or unnecessary Frequent rollovers, trapping borrowers in cycles
Lender’s Intent Long-term relationship, repayment is expected Profit from borrower’s inability to repay on time

Essentially, a predatory loan is a type of loan that takes advantage of borrowers in vulnerable and dire financial situations. These loans often come with excessively high interest rates, hidden fees, or deceptive terms that make it difficult for borrowers to repay the loan.

Federal Protections

Before diving into state specifics, it’s worth noting that there is a federal cap in place for certain groups. The Military Lending Act (MLA) caps interest rates at 36% APR for active-duty service members and their dependents on most consumer loans. This law provides a strong layer of protection, but it only applies to military members. You can learn more about the MLA on the Consumer Financial Protection Bureau (CFPB) website.

State-Level Interest Rate Caps

Interest rate caps for everyone else are set by state laws, and these can vary widely:

  1. California
    • Payday Loans: In California, payday lenders can charge up to $15 per $100 borrowed, which can equate to an APR of over 400% depending on the term of the loan.
    • Installment Loans: For loans over $2,500, there’s no cap on interest rates.
    • More Info: Check out California’s Department of Financial Protection and Innovation for detailed regulations.
  2. Colorado
  3. New York
    • All Loans: New York has a strict usury law that caps interest rates at 16% for most types of consumer loans. Charging above 25% is considered criminal usury.
    • More Info: For more on New York’s laws, the New York State Department of Financial Services is a good resource.
  4. South Dakota
    • Payday Loans: Like Colorado, South Dakota caps payday loan rates at 36% APR. This cap was set after a successful 2016 ballot initiative aimed at protecting consumers from predatory lending practices.
    • More Info: Learn more on the South Dakota Division of Banking website.
  5. Texas
    • Payday Loans: Texas doesn’t cap interest rates directly for payday loans, but it does regulate fees. This can still lead to APRs that exceed 400%, depending on the loan’s terms, which is extremely high.
    • More Info: The Texas Office of Consumer Credit Commissioner provides more information on lending laws in the state.
  6. Illinois
  7. Florida
  8. Utah
    • All Loans: Utah has no cap on interest rates, making it one of the most lender-friendly states in the U.S. This means payday lenders and other high-interest lenders can charge extremely high rates. Beware of Utah-based lenders.
    • More Info: For more, see the Utah Department of Financial Institutions.

Know Your Rights & Do Your Due Diligence

These state-specific laws are crucial because they determine how much protection you have against predatory lending practices. In states with strict caps like New York or Colorado, consumers are generally safer from exorbitant interest rates. But in states like Utah or Texas, the lack of caps means consumers need to be extra cautious when taking out loans.

Predatory loans have put many American consumers in dire financial situations, exacerbating their debt and pushing them into bankruptcies. If you are dealing with high debt and are struggling to pay your bills, consider debt settlement instead of requesting another loan which will most likely put you deeper into debt. 

Finding Out More

If you’re considering taking out a loan, it’s a good idea to first check what the interest rate caps are in your state. You can usually find this information through your state’s Department of Financial Services or a similar regulatory body. Additionally, the Consumer Financial Protection Bureau (CFPB) offers a wealth of resources on consumer rights and protections.

By understanding these caps, you can better protect yourself from predatory lending practices and make more informed financial decisions.

TurboDebt – Legit Debt Relief Company? Read Our Review…

TurboDebt (www.TurboDebt.com), sometimes also spelled Turbo Debt, is a Debt Relief Company that offers services like Debt Settlement, Debt Relief, Debt Settlement, Credit Counseling, Credit Repair, Debt Consolidation, Debt Management and debt negotiation. TurboDebt aims to help individuals reduce their unsecured debts by negotiating with creditors to settle debts for less than the full amount owed. However, like most companies in the debt relief industry, TurboDebt has mixed reviews and may not be suitable for everyone.

PS: Are you looking for the #1 Rated Debt Relief & Settlement Company in 2024? See our New Era Debt review. New Era Debt has received the highest number of positive reviews amongst all the 20 companies we researched. 

 

Company’s Snapshot

  • Official Name: TurboDebt, LLC
  • Official Website: www.TurboDebt.com
  • Phone: (844) 833-9771
  • Headquarters: 1643 NW 136th Ave, Building H Sunrise, Florida 33323
  • Service Available in: All states except WI, MN,OR, VT, and WV.
  • Founder: Joshua A. Stomel

Legitimacy, Ratings & Reviews

TurboDebt is a certified member of the American Association for Debt Resolution (AADR)

  • BBB Rating: A+ (maximum)
  • Google Reviews: 4.8/5 stars (4,768 reviews)
  • BBB Reviews: 4.93/5 stars (1,292 reviews)
  • TrustPilot Reviews: 4.9/5 stars (11,190 reviews)
  • Facebook Reviews: 4.4/5 stars (44 reviews)
  • SoloSuit: 4.8/5 stars (367 reviews)

TurboDebt is definitely a legitimate company, and they seem to have a lot of great reviews, including an A+ rating by the BBB and a 4.9 out of 5 stars rating from TrustPilot. However, it’s essential to do your own research and consider whether debt settlement is the right choice for your financial situation. Debt settlement may not be the best option for everyone, especially if you have alternatives like credit counseling, debt management plans (DMP’s), or the ability to sell assets to pay off your debt.

TurboDebt Google Reviews TurboDebt TrustPilot Reviews TurboDebt BBB ReviewsTurboDebt BBB Rating

Services Offered by TurboDebt

Based on our review, these are the services currently offered by TurboDebt:

  • DMP: TurboDebt can offer DMP’s (Debt Management Plans) which can help you more easily manage debt.
  • Debt Settlement: this service involves negotiating directly with lenders on your behalf to settle your debt for less than what you currently owe.
  • Credit Counseling: Get help from a professional who will look at your situation and offer the best possible advice. 
  • Credit Consolidation: If your credit scores are fair or good, you can qualify to get a lower interest rate debt consolidation loan to consolidate all your debts into a single monthly payment.
  • Debt Forgiveness: Total debt forgiveness is very rare, but their counselors may be to help you see if you qualify for partial loan forgiveness.
  • Bankruptcy: When you qualify for none of the above, bankruptcy may be the only solution. The good news is that it will wipe out most of your debt. The bad news is that the impact on your credit score will be felt for  years.

If you need any more info about these services, we recommend reading the “How to get rid of debt” article from the FTC.

Pros👍:

  • Not a Lender: Unlike many other so-called “debt relief companies” that are essentially just lenders, TurboDebt clearly and explicitly states on its website that it is NOT a lender and does NOT issue loans. This is good news from our point of view, since you can rest assured that they won’t try to sell you a high-interest loan to pay off your debt. 
  • Free Consultation: This is a great starting point if you are unsure of which service is best to lower your debt. They offer various services, and the impact on your credit score varies with each service, so ask them for details about your specific situation and what option is best for you. 
  • Debt Reduction: TurboDebt can help reduce the overall amount you owe by negotiating with your creditors.
  • Debt Counseling: TurboDebt offers a free consultation where they can offer advice based on your specific situation. 
  • Various Debt Relief Options: If you’re struggling to manage your debt, TurboDebt might provide a viable option for you to get back on track, and the good thing is they offer personalized advice based on each client’s financial situation.

Cons👎:

  • Fees: Although they offer free consultations, all debt settlement companies, including TurboDebt, typically charge fees that are a percentage of the debt they help settle. Do your math to see if it makes sense for you. 
  • Potential Credit Impact: Depending on what service you choose, participating in a debt settlement program can negatively impact your credit score, as it often involves stopping payments to creditors. It is however not as bad and less severe as a bankruptcy or other options. 
  • Mixed Reviews: Although the reviews are mostly good, some customers report a negative experience with the service, while others have experienced difficulties, including complaints about customer service and outcomes. Do your due diligence. 

Debt Types They Can Help With

As listed on their website, TurboDebt can help you with the following types of debt:

  1. Business Debt: Debt incurred by a business owner to fund or maintain business operations, often including loans, credit lines, or business credit cards.
  2. Car Debt: Debt resulting from an auto loan taken out to finance the purchase of a vehicle, typically repaid in monthly installments.
  3. Credit Card Debt: Unsecured debt that accumulates from unpaid balances on credit cards, often carrying high-interest rates.
  4. Divorce Debt: Debt accumulated during or as a result of divorce proceedings, which can include legal fees, alimony, and the division of shared debts.
  5. Gambling Debt: Debt arising from money borrowed or credit used to finance gambling activities, often leading to financial strain.
  6. Medical Debt: Debt incurred from healthcare expenses, such as hospital bills, surgeries, and treatments, that are not covered by insurance.
  7. Tax Debt: Debt owed to the government due to unpaid taxes, which can include penalties and interest on overdue amounts.
  8. Veteran Debt: Debt specific to veterans, which can include unpaid benefits, loans, or other financial obligations tied to military service.
  9. Mortgage Debt: Debt secured by real property through a mortgage loan, typically repaid over a long term, such as 15 or 30 years.
  10. Retirement Debt: Debt that remains or accumulates during retirement, often from credit cards, loans, or lingering mortgage payments, affecting financial security in retirement.

This review should help you decide whether TurboDebt is right for you. Make sure you read our CuraDebt and Oak View Law Group reviews, are they are also two other legitimate debt relief companies that offer similar services. 

Also, make sure you do your due diligence and speak to a financial advisor or credit counseling company to determine the best debt relief option available for your specific situation. 

 

Oak View Law Group – Good for Debt Relief & Settlement? Read Our Review…

If debt problems are mounting and pressure from creditors has become overwhelming, seeking professional help can ease the burden. Instead of forging the difficult path alone, strategizing with experts reduces the economic and psychological strain.

But, is Oak View Law Group the right partner to get you out of debt?

About the Company

 

 

 

  • URL: https://www.ovlg.com/
  • Phone: 1-800-530-6854
  • Email: clientintake@ovlg.com
  • Company HQ: Auburn, CA
  • Trustpilot Reviews: 4.4/5 stars (15 reviews)
  • Google Reviews: 4.4/5 stars (12 reviews)
  • Better Business Bureau (BBB) Reviews: 4.7/5 (12 reviews)

Pros and Cons

For a quick breakdown of how Oak View Law Group stacks up, please see the list below:

Pros:

  • Has helped more than 6,700 clients become debt-free
  • Its team of experts has experience across 15 segments of consumer law
  • There is a “No-Questions-Asked Refund Policy”
  • Oak View Law Group provides professional guidance and mentorship throughout the debt-relief process
  • Oak View Law Group can often settle your debts at 40% to 60% of the outstanding balance
  • There are services for auto, medical, and student loan debt
  • Highly rated by clients

Cons:

  • Fees are federally regulated but can be high in some cases

What is Oak View Law Group?

Helping more than 6,700 clients become debt-free, Oak View Law Group is a consumer law firm headquartered in California. It specializes in debt relief, debt consolidation, and bankruptcy services. The group helps clients save money, avoid lawsuits, and has a team of experts with experience across 15 segments of consumer law. Moreover, Oak View Law Group has a “No-Questions-Asked Refund Policy,” where your fees and trust account balance are reimbursed if you’re unsatisfied with the service.

Some of Oak View Law Group’s services include:

  • Debt Consolidation
  • Debt Settlement
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Payday Loan Consolidation
  • Payday Loan Settlement

For more insights on the value of these services, the Federal Trade Commission (FTC) has a helpful guide on How To Get Out of Debt.

How Can Oak View Law Group Help Me?

Working with a credit professional is like having an experienced coach to draw up plays on your behalf. And like any sport, it allows for a clearer strategy to achieve the team’s goals.

Oak View Law Group provides professional guidance, mentorship, and develops an effective debt-relief strategy, similar to a licensed insolvency trustee (LIT). Our partner site has an extensive guide on The Benefits of a LIT, which can help you determine if a consumer proposal or bankruptcy is the best strategy. Some of the differences include:

  1. You often forfeit more personal assets in bankruptcy
  2. Bankruptcy has a greater impact on your credit score
  3. An initial bankruptcy stays on your credit report for six years or more versus three years with a consumer proposal

For more information, please see our partner guide, What Is a Consumer Proposal in Canada and Who Is It For?

Similarly, Oak View Law Group provides parallel guidance to a LIT. By weighing the pros and cons of several scenarios, its team can help improve your financial health by achieving the following:

  • Lower monthly payments and interest charges
  • Devise a plan for manageable monthly payments
  • Reduce or eliminate late fees
  • Reduce or eliminate collection calls

What Is Oak View Law Group’s Settlement Program?

When working with Oak View Law Group, its team handles the day-to-day negotiations with creditors. For example, they manage creditor calls, negotiations, bill payments, and ensure you can enjoy your professional and personal lives with minimal disruption.

How Long Does It Take to Become Debt-Free?

Depending on the amount owed and your excess income, estimates can vary widely. In a nutshell: it often depends on how much funds you want to allocate to debt repayments.

For example, let’s say you have $10,000 in debt and Oak View Law Group negotiates a 50% settlement. You have to pay $5,000 and can choose a lump-sum payment or monthly installments.

The firm notes that “As per the industry trends and our experience, debt can be settled at 40% to 60%, but we always negotiate for the lowest settlement percentage possible to save more for our clients.”

Thus, if you can cut the collection amount in half by working Oak View Law Group, it should greatly enhance the speed at which you become debt-free.

What Does Oak View Law Group Charge In Fees?

Adhering to FTC guidelines, Oak View Law Group’s fees are outlined in the graphics below:

What Other Services Does Oak View Law Group Provide?

If you’re struggling with auto, medical, or student loan debt, Oak View Law Group can assist in these areas too.

  • Regarding auto loans, the firm can help if the vehicle has been repossessed, sold, or is being processed by a third-party collection agency.
  • For overdue medical bills, the firm notes that healthcare companies “do not provide settlement offers.” Consequently, Oak View Law Group can only help you negotiate a manageable repayment plan.
  • Likewise, student loan companies do not provide settlement plans either, and Oak View Law Group can only help if the account has been transferred to collections.

How Do Clients Rate Oak View Law Group?

While the firm doesn’t have a lot of Google or Trustpilot reviews, the vast majority of clients were satisfied with Oak View Law Group’s services. Many cited efficient settlement procedures and noted how Oak View Law Group provided support and guidance throughout the process. A few of the testimonials read:

  • Oak View Law Group was able to settle my huge payday loan debts. The staff were very helpful and understanding. I can’t believe how fast and easy they were able to settle my debt. Much respect to Oak View Law Group. Thank you for getting me out of debt.
  • OVLG assisted me in resolving three payday loan debts. Mr Sanchez assured me that all debts would settled by the projected date and I would have access to himself, agents, and my account online. The process went just as planned, he communicated with me every step of the way and was patient to answer all my concerns. I would definitely return as well as recommend OVLG.
  • I have worked with OVLG, specifically, Diego, and I cannot say enough good things that he and OVLG have done for me. They have helped me so much and are diligent, professional, and understanding. I am truly amazed at how quickly Diego replies.  Great company, great assistance. They truly give you hope.

As a result, not only does Oak View Law Group develop strategies for effective debt relief, but it also shows empathy when dealing with difficult situations.

Are We Believers In Oak View Law Group?

Because client testimonials are the best indicator of distinguished service, Oak View Law Group’s reviews speak for themselves. By providing guidance, mentorship, and working with clients every step of the way, the firm has developed a compassionate reputation.

Moreover, if Oak View Law Group can negotiate debt settlements at 40% to 60% of the outstanding balance, the cost savings can greatly outweigh the service fees. On top of that, the “No-Questions-Asked Refund Policy” adds further credibility and reduces your risk if you’re unhappy with the process.

All in all, there is a lot to like about Oak View Law Group, and if your debts have become unmanageable, it may be the right firm for you.

If you want to learn more, visit: https://www.ovlg.com/