subject: Debt Consolidation Services - How They Compare to Debt Settlement Companies [print this page] Debt Consolidation Services - How They Compare to Debt Settlement Companies
Consumers that are planning to go for Debt Consolidation Services now can get rid of companies that have a bad reputation involving scams or illegal dealings. The Federal Trade Commission (FTC) has chalked out certain clear regulations for debt relief companies. The aim is to provide debt settlement or credit counseling services to get back the money.
Some are of the opinion whether the FTC proposal would serve its actual purpose as it could affect companies that offer legitimate debt consolidation services. The FTC plans to do away with upfront charges and scams, and the industry believes that it could put out legitimate services.
According to Debt negotiators a settlement often takes about a span of two to three years. If the FTC proposal is accepted then companies will require some considerable amount of time.. The debt settlement companies would be also requiring different creditors or CA's before completing a negotiation and the success rate will go down. As per FTC,a ban on charges are reasonable as several consumers have complained regarding various companies for services that they never render.FTC is making it possible for debtors to get sufficient benefit before they are made to pay for debt relief.A workshop on FTC was a primary step in identifying important issues and showed the path for improvements. There was an overwhelming response at the workshop as debt consolidation service remained an alternative from filing bankruptcy and protecting from unethical practices in the environment.
A legitimate debt settlement companies should be able meet the following factors
1. They should have clear well defined procedures for debt settlement program
2. It is necessary to have a better business bureau
3. Must possess comprehensive debt settlement consolidation certification that is t e required for collection agencies and vendors.
4. An open door policy for all regulatory agencies and vendor certification is necessary.
5. There should be a customer redresser of dispute and review process.
6. An in house legal counsel with considerable amount of experience is required in credit industry.
7. Clients will all be catered to by the same company and they should not come in contact with third party.
8. The debt settlement firm provides prospective clients with an in-depth review of their program multiple times before an agreement is entered into.
9. A total disclosure is necessary through the process of active monitoring.Debt consolidation services should be about on depth analysis of their program before an agreement is reached.
Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That's why it's so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies. To find a legitimate debt settlement company in your state check out the following link:
