As Americans still struggle to get a grip on their debt, it is has led to the rapid rise of the debt settlement company. These organizations vow to negotiate with creditors on behalf of the borrower to reduce interest rates, penalty fees, and even outstanding balances- all for a substantial upfront fee.

While some of these organizations offer legitimate services, others are outright scams. If you are thinking of working with a debt settlement company, here are five warning signs that a debt settlement company is a scam. But the bottom line is, if it sounds too good to be true, then it probably is:

1. They claim they can dramatically slash outstanding balances. While some creditors may be willing to cut their losses on a bit of what’s owed, such a claim is unrealistic.
2. They state that they can stop calls from debt collectors and prevent legal action. In truth, debt settlement companies have no control over the debt collection practices of creditors.
3. They charge an exorbitant fee upfront. A legitimate service will base fees on the amount of money owed to creditors and it will be tied to the company’s performance.
4. They claim that your credit score will be unaffected. The truth is that a debtor’s credit score will be affected with the involvement of a debt settlement company (though the affect will be better than it would be if the debtor defaults outright.)
5. They tell you not to speak to creditors. The intention of this is to keep debtors from finding out about the true status of their accounts.