subject: Are You Paying A Commission Before The Services To Your Provider? [print this page] Are You Paying A Commission Before The Services To Your Provider?
Most debt settlement companies made huge profits through upfront fee during the recession period. The upfront fee was charged without any guarantee of the Debt Relief Program being successful or not. The practice left many debtors loose the little savings they had and forced them to bankruptcy which not only damaged their credit rating but closed all doors to any kind of loan in future. The practice saw few debtors taking extreme measures due to the financial condition which left them penniless with lots of creditors after them.
The Debt Settlement Relief Act 2010 which was recently passed by the Federal Trade Commission and brought with it the much awaited good news by providing protection under law to consumers seeking debt relief. The new law made it mandatory that consumers that enter Debt Relief Programs will not have to pay upfront fees if the debt settlement companies did not help them settle the debt.
The new bankruptcy laws of year 2005 saw Debt Relief Programs became popular. Most of these debt relief programs were not advantageous for the consumer due to the fact that the upfront fees they had to pay for services were not guaranteed to be a sure shot success.
The consumers who were looking forward to eliminate up to 50% of their debt and were worried about the credit rating were at the mercy of companies who made a business out of collecting upfront fees since these companies would just collect the fee and do nothing.
The Debt Settlement Relief Act ensured that the consumers won't have to pay any fees to the debt relief services until they reached a successful settlement deal with the creditors in order to eliminate at least 35% of the unsecured debt. So if your Debt Relief Program requires youtopay any commission before the service you ought to make them aware of the law and can even lodge a complaint with the Better Business Bureau to make sure the company does not cheat you and several others like you who are looking forward to a debt free future and some financial security.
