subject: Why Reputable Debt Settlement Companies Have Nothing To Fear From Increased FTC Regulation [print this page] Debt settlement can be a good way to get help when in deep debt but some may argue that this option is not very secured and that it is more of a risk than anything else. This is a debt relief option that is used to reduce the amount of debt you have and you cannot pay back. This is usually achieved with the help of a debt settlement company that knows how to convince the creditor into reducing the amount of debt and they do this for a fee.
Most settlement companies used to be less than reputable and they used to make a profit from taking money in advance from their clients without helping them in any way. When hiring a settlement company you used to have to give a big sum of money in advance so that they will take care of your negotiations and that you get a good deal. In other words, you used to pay in the dark without knowing exactly what will happen with your money. Many scams occurred and a lot of consumers filled a complaint at the BBB regarding these fake companies.
The FTC changed all that in 2010 when a new law was introduced that promised to make debt settlement much more legitimate. This prohibits debt settlement companies from taking any upfront fees. Online scams are mostly based on these upfront fees and as no consumer will pay them anymore, most fake firms will be forced to disappear and leave only the reputable debt settlement companies to function.
As long as the companies are legitimate and they provide good services in exchange for a fair fee, they have nothing to worry about and the increased FTC regulation will not affect them in anyway. Actually, the new laws help reputable settlement companies because now they have less competition and more consumers start gaining trust in this debt relief option. Most settlement companies now, give you free financial consoling so that you know what options you have and what can you get from all of them; it is a good way to get help and also to avoid bankruptcy.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
Why Reputable Debt Settlement Companies Have Nothing To Fear From Increased FTC Regulation
By: Chester Fraizer
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