Do Debt Settlement Relief Scams Really Work in Texas

debt settlement texas
by CoastConFan

Do Debt Settlement Relief Scams Really Work in Texas

Texas like all other states has been devastated by the recent economic turmoil. Due to this, every individual and family are struggling hard to manage their finances, and are increasingly falling into debt. So they are now looking for a various debt relief programs to save their neck from the outstanding debt. Among all the debt relief programs, people in Texas mostly turn to debt settlement where they negotiate with the creditors, and reduce the principal amount of debt.
 
However, over the past few years people are weary of the debt settlement industry, and think that it shares a bad reputation in the market. If you are someone considering debt settlement Texas but are nervous about what you have heard, and want to know more about the scam then you must continue reading the article.
 
Many new companies have started the debt settlement business with the greed of making a huge profit. These companies in many people’s eyes are nothing but a scam. They promise the consumers to deal with the creditors on their behalf, and settle the debt. With this promise they charge an upfront fee from the consumers but ultimately do nothing. This upfront fee is making the debt settlement business lucrative, and at the same time leaving the consumers at a great risk of loosing their money. Some companies in order to make an overwhelming profit do not even evaluate whether the consumer is eligible for the debt settlement or not. They enroll more people than they have the capacity to properly service. This resulting people paying upfront fees and never getting the service they have paid for.

And hence, they are getting into a worse financial situation.

 
Now, the Federal Trade Commission has taken the act of defense to the people of the country, and has regulated the action of Advance Fee Ban. This act no longer allows the debt settlement companies collect advance upfront fees until they actually settle the debt of their consumers. So the consumers do not have to worry of the scam as the company can only collect money after settling their debt. This is also helpful for those debt settlement companies who indeed intend to serve their clients, and achieve the results desired. By weeding out all the scam companies it allows the honest ones to flourish.  
 
Some companies follow another fee model that is they collect the fee based on the percentage of the money saved for their clients. This motivates the companies to get the best possible settlement for their clients.
 
Hence, it is to be concluded that if people in Texas are in need of Debt Settlement Texas then they can rely on the debt settlement companies out there, and settle their debt.

The article is contributed by BG, who is an IAPDA arbitrator associated with Oak View Law Group. Through this article, he discusses the Debt settlement relief scams who really works in Texas.

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