Most people out there, who are looking for debt relief, have no idea that there are now strict regulations that state exactly how a debt settlement company can operate.
This debt settlement legislation was initiated by the FTC to combat the number of debt settlement scams out there.
With our current recession, many companies started popping up claiming to help people eliminate their debt in half the time.
Many of these companies offered this service with the major portion of their fees upfront.
Some of these companies realized that they could take 6 or more payments from the client before they had to do any work on their behalf and would do this, then scam them out of the money.
After receiving numerous complaints the FTC passed the debt settlement laws stating that a debt reduction company could not charge its fees until a settlement has been reached.
This allows the consumer to see the results of the debt relief company before paying for their services.
It also leaves little opportunity for a company to take the money and run.
These are not the only debt management laws that were a part of their ruling.
It also stated in the debt settlement FTC guidelines, that a debt management company had to provide full disclosure to the client.
This means that they have to truly go over all available options to the consumer, explain how each one would affect them.
No longer can a company tell you only about debt relief making you feel that this option is your only one.
Another factor in these debt settlement laws is that the debt negotiation company must also ensure you understand all of aspects of the debt relief program.
Debt settlement as with many other debt reduction programs are hardship programs and is not just a walk on the park.
There are things you should know that many debt reduction companies do not divulge.
Things like how it will affect your credit score and what the legal ramification are.
These are things commonly left out when speaking to the average debt relief company.
I would highly recommend speaking to a company that is both accredited and in full compliance with the debt settlement laws and is willing to take the time to explain everything in detail to make sure you understand what is involved in credit card debt help.
This debt settlement legislation was initiated by the FTC to combat the number of debt settlement scams out there.
With our current recession, many companies started popping up claiming to help people eliminate their debt in half the time.
Many of these companies offered this service with the major portion of their fees upfront.
Some of these companies realized that they could take 6 or more payments from the client before they had to do any work on their behalf and would do this, then scam them out of the money.
After receiving numerous complaints the FTC passed the debt settlement laws stating that a debt reduction company could not charge its fees until a settlement has been reached.
This allows the consumer to see the results of the debt relief company before paying for their services.
It also leaves little opportunity for a company to take the money and run.
These are not the only debt management laws that were a part of their ruling.
It also stated in the debt settlement FTC guidelines, that a debt management company had to provide full disclosure to the client.
This means that they have to truly go over all available options to the consumer, explain how each one would affect them.
No longer can a company tell you only about debt relief making you feel that this option is your only one.
Another factor in these debt settlement laws is that the debt negotiation company must also ensure you understand all of aspects of the debt relief program.
Debt settlement as with many other debt reduction programs are hardship programs and is not just a walk on the park.
There are things you should know that many debt reduction companies do not divulge.
Things like how it will affect your credit score and what the legal ramification are.
These are things commonly left out when speaking to the average debt relief company.
I would highly recommend speaking to a company that is both accredited and in full compliance with the debt settlement laws and is willing to take the time to explain everything in detail to make sure you understand what is involved in credit card debt help.
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