Debt Settlement Consumer Protection Act - Don't Pay a Dime Until Your Debts Settle

Debt Settlement Consumer Protection Act - Don't Pay a Dime Until Your Debts Settle

At the end of the year 2009, people were finding debts a nasty fence in the way of economic development. To get free from these debts, people started taking services of settling companies. But people hesitated in taking the services of the settlement companies because many scam businesses were present in the markets who were charging huge upfront charges. People paid these companies for giving reductions in their loans but these companies made nothing for these debtors. When the people found that there is no decrease in their liabilities by even paying the money, they started to opt for bankruptcy. Bankruptcy had proved the best way for getting free from debts but it was not useful in providing protection to its users.

Federal Trade Commission has provided protection to the debtors by introducing the debt settlement consumer protection act. This act provides the right to the debtor to check the legitimacy of the settlement company before coming in contract with it. It also provides them the right to pay the service charges after the settlement is done. If any fraudulent company charges the upfront charges and does not make any reduction in the liability then the debtor also has the right to recover this amount by taking the help of Federal Trade Commission. In short, the Federal Trade Commission has protected the consumers from being scammed by the fraudulent companies.

After the introduction of this law, many people started to opt for debt settlement. Now the debtors don't think that they are in risk of losing their money if they are hiring any settlement company for reducing their debts. There is no need to pay even a penny before the work is not done. If you have hired any settlement company and this company is not making any step for reducing your loans then you should not worry about making any payment to the settlement company. It will be better for you to hire any such settlement company which will make settlements with the creditor on your behalf and will try to get you free from the burden of debts.

If you have over $10k in unsecured debt it could be a wise financial decision to consider debt negotiation. Due to the recession and overwhelming amount of people in debt, creditors are more than willing to negotiate your debt balance. There are also other debt relief options.

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