subject: Debt Settlement Negotiation - How The FTC Just Made Debt Settlement Less Risky [print this page] Debt Settlement Negotiation - How The FTC Just Made Debt Settlement Less Risky
Debt settlement in the present is considered to be a very important method and is highly recognized for its productivity. Consumers do find it as a great investment which can bring them good fortune in the future. However, there was a time when consumers thought debt settlement to be an unreliable practice or a strategy which carries many risks. The main reason for this was the number of fraudulent relief services that were operating out of laws.
What they mostly did was grabbing what the consumers had and vanishing away. This was seen widely in the earlier times which became one of the major reasons for consumers to dislike the whole process. Therefore, authorities like the Federal Trade Commission decided to put an end to this miserable state and introduce more beneficial methods of relief for consumers who are ripped apart by massive debts.
The prohibition of the collection of upfront fees became the ultimate result of this interest by the FTC which became quite a challenge for many in the trade. Mainly, fraudulent settlement companies faced the risk of being thrown away out of the window. As the collection of upfront fees became illegal there was no other way for them to survive. Furthermore, under this law, the collection of fees from consumers depended upon the success rate which a relief service offered them.
On the other hand consumers too understood this procedure and started identifying most of the fraudulent settlement companies that made them stop visiting these fake relief services that were causing trouble. Therefore, it is clear how life became quite difficult for many fake service providers equally making debt settlement less risky. It is the reason to why debt settlement negotiation is considered to be a very important strategy when it comes to settling massive consumer debts in an instant.
Getting out of debt is not impossible but it will not happen over night. Consumers who are serious about debt relief need to be determined. If you have over $10 k in unsecured debt you should really consider debt settlement. Consumers can expect to realistically eliminate 60% of their unsecured debt with a settlement. To find the best performing debt settlement companies in your state use the following link:
