Double Crossed By Debt Counselors

"They told people they could guarantee at least a 50 percent reduction in debt, and they told customers they'd negotiate in a timely fashion. In a lot of cases, the creditors approached [the company] to settle their clients' debts, but they ignored them," said Carol Paynter, the FTC's lead counsel in the BBFS suit. "They were deceptive in their program -- what people were told would happen didn't really happen."

BBFS officials denied all the charges. A federal court entered a restraining order that temporarily halted BBFS' operations in November, and the company has been put into receivership pending the outcome of the litigation.

Successful Lawsuits Don't Repair Credit

The FTC has pursued similar suits in the last three years, but prosecuting these cases is not always easy. Even in successful suits the victims can be left to rebuild their credit problems on their own.

For consumers, these stories could serve as a warning -- debt counselors or managers can be a helpful way to address high debt problems, but it's important to be informed, experts say. As was the case with Christina, consumers should make sure to follow debt repayment plans closely on their own instead of entrusting all of their finances to a manager.

"I have credit cards again, and I try to purchase within my means, because I realize that if you're not careful, it can bite you," Christina said.

Both the Better Business Bureau and the FTC suggest researching multiple firms before settling on the best one to handle your finances. The FTC has set up credit counseling guidelines on its Web site, and the Better Business Bureau urges consumers to report any suspicious dealings.