subject: Debt settlement consumer protection act - don't pay a dime until your debts settle [print this page] Debt settlement consumer protection act - don't pay a dime until your debts settle
This is a fact that where there is good, there is bad and when we talk about debt settlement companies, it is not wrong to say that all are not legitimate. With the start of debt settlement programs, many companies were inaugurated and started providing negotiation services with the financial institutions. The debt suffering people found it easy and they rushed towards these companies. All the companies were not legitimate and many of them were just established to earn profit. Many companies started fraudulent activities and started taking upfront charges. The purpose of these companies was to make profit not to provide any relief to consumers. These activities of companies ruined the trust of the people over debt settlement companies and once again the ratio of bankruptcy started to increase.
The federal government realized the issue and it started making some changes for the consumer protection against thee fraudulent companies. The new law was introduced a few months back in which some changes were made regarding upfront fees. According to the new laws, a debt settlement company can not charge any upfront fee from any consumer until the debt is settled or the consumer is satisfied. If is to inform a consumer that do not pay a dime until your debt is settled because now the debt negotiation agents have no rights to ask for any upfront fees from any consumer. This new law has decreased the ratio of bankruptcy and people are once again attracted towards the services of debt settlement companies.
This new law has separated the good and bad. Only legitimate companies can survive in the markets now because the purpose of legitimate companies is to bring reduction and provide relief to the consumer. In order to get paid for their services, they will try to finish the work as soon as possible. By this not only the consumer will be satisfied but the creditor will also be exited to get instant repayment.
Now with the passage of time, the trust over legitimate debt settlement is increasing and the ratio of bankruptcy is decreasing, which was the actual target of changing this law.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.
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