How to Figure Out if a Debt Consolidation Company or Debt Collection Agency is Legitimate? And Not Just Another Debt Relief Scam

Have you been contacted by a company with a debt consolidation offer that seems too good to be true? Have you been contacted by a debt collection agency that seems fishy to you?

  

Here are a number of ways to determine if a company is legitimate:

1. Check the Company Website: Look for a professional, well-designed website. Verify contact information, including a physical address and phone number. Check for spelling and grammatical errors, which can be a red flag.
2. Verify Business Registration: LLCs, for example, need to register with some government entity to actually be an LLC
• In the U.S., check with the Secretary of State's website where the business is registered.
• In the UK, use Companies House.
• In Canada, use the Canada Business Corporations Act (CBCA) registry.
• Other countries have similar registries.
3. Look for Online Reviews and Ratings: Search for reviews on platforms like Google, Yelp, Better Business Bureau (BBB), Trustpilot, or industry-specific review sites. Be cautious of extremely positive or negative reviews, which could be fake.
4. Check for Accreditation: Look for any industry-specific accreditations or certifications. For example, in the U.S., the BBB accredits businesses based on their reliability and performance.
5. Search for News Articles: Look for news articles or press releases about the company. Reliable companies often have some media presence.
6. Use Professional Networks: LinkedIn can be a useful tool to see if the company and its employees have a professional presence. Look for connections and endorsements.
7. Check with Industry Associations: Many industries have associations or trade groups that keep a list of legitimate businesses.
8. Contact the Company Directly: Call the company's phone number or visit their office if possible. Speaking directly with a representative can provide insights into the company's legitimacy.
9. Verify Tax Information: In the U.S., you can check if a company has an Employer Identification Number (EIN). Other countries have similar tax verification methods.
10. Research the Company’s Financial Information: Publicly traded companies are required to publish their financial statements. You can find these on their official website or through financial news websites.
11. Consult Legal or Business Experts: If you have doubts, consulting with a legal expert or business advisor can provide additional assurance.

By following these steps, you may be able to gather sufficient information to determine if a company is legitimate. The last step is important, though, because an illegitimate business would also have access to this list. 

One last tip, how long has the company been in business is also important. So also check the age of articles, the year of registration, etc. 

Hope this helps!