{"id":368905,"date":"2023-03-14T15:09:35","date_gmt":"2023-03-14T20:09:35","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/can-i-sue-debt-settlement-or-lump-sum-companies.html"},"modified":"2026-06-09T13:47:40","modified_gmt":"2026-06-09T18:47:40","slug":"can-i-sue-debt-settlement-or-lump-sum-companies","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-debt-settlement-or-lump-sum-companies.html","title":{"rendered":"Can I Sue Debt Settlement or Lump Sum Companies?"},"content":{"rendered":"\n
\n

Can I Sue Debt Settlement or Lump Sum Companies?<\/h1>\n\n
\n
\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Steven Ellison, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n

Yes. Debt settlement and lump sum companies are legally required to be truthful about their services and cannot charge fees before performing work. If they mislead you, fail to deliver promised results, or cause financial harm, you may have grounds for a lawsuit.<\/p>\n\n <\/div>\n\n\n\n

You can sue debt settlement companies, also known as credit repair companies, for common law claims like breach of contract and fraud.<\/p>\n

This article is about suing a company that you hire to help settle your debts or repair your credit. This is not the same as a debt collection company, which is hired by the original creditor (a third party) that wants to collect a debt you might owe. If you’re thinking about suing a debt collector, FindLaw’s Can I Sue a Debt Collector?<\/a>\u00a0explains options for pursuing a claim against debt collection agencies.<\/p>\n

Unlike debt collectors, debt settlement and credit counseling companies are supposed to be on your side. You might hire them to help you make a lump sum payment to a credit card company or another creditor who might be showing up on your credit report.<\/p>\n

If a debt relief company has wronged you, talk to a consumer protection lawyer<\/a>\u00a0in your area. An experienced attorney can\u00a0guide you through the process of holding the company accountable for any financial harm it caused. Taking legal action could help recover your losses and prevent the company from misleading others.<\/p>\n

Types of Debt and Services in Dispute<\/h2>\n

It’s important to have an understanding of why you’ve gone to a debt settlement company<\/a> in the first place, which could be\u00a0to:<\/p>\n