If you’re struggling with debt and considering debt consolidation, it’s important to choose a reputable company that can help you effectively manage your financial situation. One such company that often comes up in discussions is Preferred Financial Services. However, before you decide to work with them, it’s crucial to understand whether they are a scam or a legitimate option. In this article, we’ll delve into the history of Preferred Financial Services, examine the services they offer, and explore the pros and cons of working with them.
A Brief Overview of Preferred Financial Services
Preferred Financial Services, formerly known as Signature Preferred Financial Solutions, is a debt settlement company that has been operating since 1999. They provide a range of services, including debt counseling, credit counseling, and debt management. It’s worth noting that while the company is not accredited by the Better Business Bureau (BBB), it holds an A+ rating.
Customer Reviews and Concerns
When evaluating the reputation of Preferred Financial Group, it’s essential to consider customer reviews. Unfortunately, the company has a number of negative reviews online, which raise significant concerns. Many customers claim that they have been scammed or ripped off by the company. Hidden fees and a lack of assistance are among the common complaints. These negative reviews contribute to a general perception that Preferred Financial Services is not a reputable company.
Pros and Cons of Preferred Financial Services
Let’s take a closer look at the pros and cons of working with Preferred Financial Services:
- Established company: Preferred Financial Services has been in business for over 20 years, which demonstrates its longevity and experience in the industry.
- Bait and switch tactics: One of the most significant complaints about Preferred Financial Services is their alleged use of bait and switch tactics. Customers claim that the company advertises low monthly payments but then tries to increase them after enrollment, leaving already struggling individuals in a more challenging financial situation.
- Negative customer reviews: The prevalence of negative reviews online raises serious concerns about the company’s trustworthiness and effectiveness.
Considering the cons outweigh the pros, it is advisable to explore other debt settlement companies that have better customer reviews and do not engage in bait-and-switch tactics.
Understanding Preferred Financial Services
To fully comprehend the nature of Preferred Financial Services, it’s important to be aware of a few key aspects:
- Unfulfilled promises: Numerous reports have surfaced regarding Preferred Financial Services not delivering on their promises. Many individuals who have worked with the company found that their debt was not settled as initially guaranteed, leading to disappointment and frustration.
- High fees: Preferred Financial Services has been known to charge high fees, which can add to the financial burden of individuals seeking debt relief. These fees may outweigh the benefits of the debt settlement process, making it important to consider the cost-effectiveness of their services.
- Debt settlement not guaranteed: Debt settlement, as a solution, is not guaranteed to work for everyone. It depends on individual circumstances. Consulting with a financial advisor to explore all available options is recommended before deciding to work with Preferred Financial Services.
Qualifications and Alternatives
To qualify for Preferred Financial Services, individuals must have a minimum of $15,000 in unsecured debt, be current on their payments, and be able to make a monthly payment of $250. However, considering the concerns raised about the company, it is worth exploring alternative debt relief options.
There are several other debt relief companies that may have less stringent requirements and offer similar services. It is crucial to conduct thorough research and compare the costs and benefits of different debt settlement companies before making a decision.
Additionally, if you prefer not to use a debt relief company, there are alternative methods to consider, such as debt consolidation, debt management, debt counseling, debt negotiation, or bankruptcy. Each method has its own advantages and disadvantages, so seeking guidance from a financial advisor can help you make an informed decision based on your specific situation.
The Cost and Payment Process
Preferred Financial Services charges fees based on the amount of debt and the number of creditors involved. On average, they charge 15% of the total debt owed. For example, if you have $20,000 in debt, you would pay $3,000 in fees. It is important to compare the costs of various debt settlement companies before committing to one.
Regarding the payment process, if you decide to work with Preferred Financial Services, you will be required to pay a fee based on the amount of debt and the length of time it takes to pay it off. Monthly payments will go toward paying off the debt as well as the company’s fees. However, it’s crucial to understand that working with them can impact your credit score, as debt settlement can be seen as a negative on your credit report.
Considering the potential impact on your credit score and the costs involved, it is essential to weigh the pros and cons before making a decision.
Consequences of Non-Payment and Credit Score
If you are unable to make payments to Preferred Financial Services or any other debt settlement company, several consequences may arise. The company may try to work with you to establish a new payment plan. However, if you’re still unable to make payments under the new plan, the company may resort to legal action, such as filing a lawsuit or garnishing your wages.
To avoid such scenarios, it’s important to communicate with customer service as soon as possible if you’re facing difficulties with payments. By reaching out early, you increase the likelihood of finding a mutually beneficial solution.
Regarding credit scores, debt settlement can have a negative impact. Settling debt is typically recorded on your credit report as “settled for less than the full balance,” which can stay on your report for up to seven years and potentially harm your credit score. Additionally, future creditors may be less inclined to work with you if they perceive a willingness to settle for less than the amount owed.
Before moving forward with Preferred Financial Services, it’s advisable to consult with a financial advisor or debt counselor to evaluate the suitability of their services for your specific circumstances.
Preferred Financial Services BBB Reviews
Preferred Financial Services has an A+ rating with the Better Business Bureau (BBB), but it is important to note that they are not BBB accredited. Customer reviews on Trustpilot, however, reveal concerns and complaints about feeling misled and scammed. This disparity between BBB ratings and customer reviews raises questions about the legitimacy and overall trustworthiness of the company.
1. How long has Preferred Financial Services been in business, and what is its track record?
Answer: Preferred Financial Services, formerly known as Signature Preferred Financial Solutions, has been operating since 1999, accumulating over thirty years of experience in the industry. While their longevity demonstrates stability, it’s important to evaluate their track record by considering customer reviews and feedback.
2. Is Preferred Financial Services accredited by the Better Business Bureau (BBB)?
Answer: No, Preferred Financial Services is not accredited by the BBB. However, they maintain an A+ rating, indicating that they have met certain standards of customer service and business practices.
3. How do Preferred Financial Services handle customer debts?
Answer: Preferred Financial Services offers debt settlement services, where they negotiate with creditors on behalf of their clients to reduce the amount owed. They aim to reach agreements that allow clients to pay a lower amount than the original debt while helping them become debt-free. This company is not providing mortgage financing
4. Are there any hidden fees associated with Preferred Financial Services?
Answer: While some negative customer reviews suggest the existence of hidden fees, it’s important to clarify the specifics with Preferred Financial Services directly. Request a detailed breakdown of any potential fees and ensure you understand the terms and conditions before proceeding.
5. Can Preferred Financial Services guarantee that my debt will be settled?
Answer: Debt settlement, including Preferred Financial Services, is not a guaranteed solution for everyone. The outcome depends on your specific financial circumstances and negotiations with creditors. It’s crucial to have realistic expectations and explore other debt-relief options with the help of a financial advisor.
6. How do Preferred Financial Services determine eligibility for their services?
Answer: To qualify for Preferred Financial Services, individuals typically need to have a minimum of $15,000 in unsecured debt, be current on their payments, and be able to make a monthly payment of $250. These criteria are set to ensure that their services are suitable for clients who genuinely require debt relief assistance.
7. How do Preferred Financial Services impact credit scores?
Answer: Debt settlement can have a negative impact on credit scores. When a debt is settled, it appears on the credit report as “settled for less than the full balance.” This information may remain on the report for up to seven years and potentially lower the credit score. It’s important to consider this consequence before pursuing debt settlement.
8. Can I cancel my agreement with Preferred Financial Services if I’m not satisfied?
Answer: While it may be possible to cancel your agreement with Preferred Financial Services, it’s important to be aware that doing so could have negative consequences. You may still owe fees for the services rendered, and any money you’ve already paid may be non-refundable. It’s crucial to carefully review the terms of your agreement and consult with Preferred Financial Services for specific cancellation procedures.
9. How does Preferred Financial Services compare to other debt settlement companies?
Answer: It’s essential to conduct thorough research and compare Preferred Financial Services with other debt settlement companies. Consider factors such as customer reviews, fees, success rates, and overall reputation to determine which company aligns best with your needs and financial goals.
10. Are there alternatives to Preferred Financial Services for debt relief?
Answer: Yes, there are alternatives to Preferred Financial Services for debt relief. Other options include debt consolidation, debt management programs, debt counseling, debt negotiation, and even bankruptcy. Each option has its own advantages and disadvantages, so it’s crucial to consult with a financial advisor to determine the best course of action based on your unique situation.
Is Preferred Financial Services a Scam or Legitimate?
Given the negative customer reviews, concerns about bait-and-switch tactics, and high fees, it’s understandable that doubts may arise about the legitimacy of Preferred Financial Services. While they have been in business for over 20 years and hold an A+ rating with the BBB, it is crucial to consider the experiences of past customers and weigh all available options.
If you are contemplating using Preferred Financial Services to manage your debt, take the time to thoroughly research and explore other debt relief companies that may have better customer reviews and offer more transparent services. Making an informed decision is vital when it comes to resolving your financial difficulties.
In conclusion, debt consolidation can be a helpful strategy for those struggling with debt, but it’s crucial to choose a reputable and reliable company to guide you through the process. While Preferred Financial Services may have an established history, the numerous negative reviews and concerns expressed by customers suggest potential risks and make it advisable to consider alternative options.
Seek guidance from financial professionals and explore all available avenues to determine the best course of action for your specific financial circumstances. Remember, making an informed decision is key to achieving long-term financial stability.
Preferred Financial Services
Preferred Financial Services Review
In conclusion, debt consolidation can be a helpful strategy for those struggling with debt, but it’s crucial to choose a reputable and reliable company to guide you through the process. While Preferred Financial Services may have an established history, the numerous negative reviews and concerns expressed by customers suggest potential risks and make it advisable to consider alternative options. Seek guidance from financial professionals and explore all available avenues to determine the best course of action for your specific financial circumstances. Remember, making an informed decision is key to achieving long-term financial stability.
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