Fraud among debt relief companies is running rampant these days and it is becoming more important than ever to do your homework before seeking advice. Debt-Set Resolve Credit Counseling is the latest company to be hit with scandal after the Federal Trade Commission alleged that it violated federal law by falsely claiming that it could reduce consumers' credit card interest rates or the amount of their credit card debt.

According to the FTC complaint filed in March 2007, Debt-Set sold debt reduction services through websites, television and radio advertisements with claims such as "Reduce Debt Now" and "Eliminate Harassing Calls". When consumers called the toll-free numbers, they were encouraged to enroll in a debt consolidation program if their unsecured debt was up to a month overdue or a debt settlement program if it was overdue longer.

The FTC alleged that Debt-Set violated the FTC Act by falsely promising to obtain lump-sun settlements, such as "fifty cents on the dollar" or "50 to 60 percent" of consumers' total unsecured debts. The complaint also noted that the company misrepresented that they would not charge consumers any up-front fees before obtaining the promise of debt relief and that participation in the program would stop creditors from calling or suing them.

In the end, debt settlement and similar services can help reduce debts of 40 to 60 percent, but it is only a possibility, not a promise. Consumers that are in trouble should seek out companies that take the time to explain the process and remain upfront about any fees or other charges that come as a result of using such services.