Federal Debt Relief Help Programs – Understanding The New FTC Debt Settlement Laws

Federal Debt Relief Help Programs – Understanding The New FTC Debt Settlement Laws

There are new FTC debt settlement laws in place which aim at making settlement a more legitimate and authentic method of helping the consumers to get out of debt. The FTC or the Federal Trade Commission laid down this law in year 2010 when it was found that a number of fraud companies in the settlement industry were involved in unfair trade practices. They were actually cheating the consumers on the name of helping them with their debt settlement and were simply making money without giving any real help to the consumers.

Innocent and troubled, the consumers simply stepped into their trap because of the false promises of debt settlement in the shortest possible time. When the consumers approached these companies, they were convinced to pay the service fee in advance. Once paid, the fraud companies simply turned their back on the consumers and after a couple of months, the consumers were informed that the settlement attempts were turned down by the creditors and that there is nothing more they can do to help the consumers to get out of their debts. There was no way of cross verifying the legitimacy of what these companies said and thus, the consumers lost their money to these companies.

The FTC came up with a new debt settlement law which states that the consumers are not supposed to pay a single dime to the companies unless the debts are actually eliminated by the promised amount. Until then, the companies will have to bear the costs which are involved in settlement. Only when the creditors agree and settle the debts with the consumers, these companies are allowed to ask for their money. If settlement fails, the firms lose their money as the consumers are then not required to pay a single dime to the settlement firms.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $ 10k in unsecured debt.

Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

Federal Debt Relief Laws – Understanding the New FTC Debt Settlement Laws

There are new FTC debt settlement laws in place which aim at making settlement a more legitimate and authentic method of helping the consumers to get out of debt. The FTC or the Federal Trade Commission laid down this law in year 2010 when it was found that a number of fraud companies in the settlement industry were involved in unfair trade practices. They were actually cheating the consumers on the name of helping them with their debt settlement and were simply making money without giving any real help to the consumers.

Innocent and troubled, the consumers simply stepped into their trap because of the false promises of debt settlement in the shortest possible time. When the consumers approached these companies, they were convinced to pay the service fee in advance. Once paid, the fraud companies simply turned their back on the consumers and after a couple of months, the consumers were informed that the settlement attempts were turned down by the creditors and that there is nothing more they can do to help the consumers to get out of their debts. There was no way of cross verifying the legitimacy of what these companies said and thus, the consumers lost their money to these companies.

The FTC came up with a new debt settlement law which states that the consumers are not supposed to pay a single dime to the companies unless the debts are actually eliminated by the promised amount. Until then, the companies will have to bear the costs which are involved in settlement. Only when the creditors agree and settle the debts with the consumers, these companies are allowed to ask for their money. If settlement fails, the firms lose their money as the consumers are then not required to pay a single dime to the settlement firms.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $ 10k in unsecured debt.

Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

It is a fact that the debt settlement industry has earned a bad reputation in the market because there were many fraudulent companies working previously that used to offer the best relief services to debtors. With this attractive motto, they used to attract many customers. These scam companies cheated the consumers and ran away with their money and made them suffer even more. These companies used to charge high upfront fees from their clients and then after sometime, they reported to the consumers that the process of their settlement did not go well because the creditors did not agree.

After some time, when the government got the information about the false acts of these scam companies, it took these fraudulent companies out of business and declared them defaulters. Then the FTC laid down new debt settlement laws which were proven quite beneficial for the consumers. These laws stated that the settlement firms will not charge any kind of upfront fees or any charges from their client unless and until they settle their debts. Once they solve the issue then the companies would be paid and if they fail to resolve debt issues then there is no need to pay them.

If you want to settle your debts then you should hire the services of a legitimate debt settlement company. Once you have hired the services of a settlement firm then you can get a reduction of 60 to 70 percent in your debts and you can pay the remaining amount in a lump sum or in installments. You can also settle your bad debts if you negotiate with the authorities. It can be done if you hire a professional debt settlement firm. The firm would negotiate with the authorities on your behalf and would enforce the authorities to realize that you are unable to repay your debt amount.

If the authorities consider your appeal then you can get full clearance of debts without paying anything.

The FTC’s laws have been proved quite beneficial for the consumers. The debt settlement process has become the best alternative to bankruptcy and many of the consumers have got rid of their bad debts by opting for these new laws proposed by the FTC.

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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