subject: Medical Debt Negotiation - How FTC Laws Make Medical Debt Settlement Easier [print this page] Medical Debt Negotiation - How FTC Laws Make Medical Debt Settlement Easier
Medical debt negotiation method is used to obtain relief from the unmanageable medical bills. The extensive use of the method actually led to the growth and development of the shady relief firms which were involved in fraud practices. Making false promises, they extracted money from the consumers and they never negotiated with the creditors. The loss of money and the helpless situation forced the consumers to file for bankruptcy and they actually lost faith from the relief industry as a whole. In order to rectify things and to preserve the consumer rights, the FTC came up with a new legislation and this made medical debt negotiation easier.
The new laws laid down by the FTC banned upfront fee collection and forced the settlement firms to achieve 35% or more of relief for the consumer and when the consumers come out of their debts and are fully satisfied, the settlement firms can get paid. Also, the consumers will not pay for the negotiation expenses unless they are debt free. This means that the companies will have to bear those expenses.
It is because of these regulations that the scam companies had to leave the industry because they did not know how to negotiate and they did not have money to bear the expenses. So, only the authentic firms stayed behind and the consumers became sure that will get genuine help with their medical bills and also, they don't have to pay unless the dues are settled. Thus, the worries for the consumers decreased as they knew that the legitimate firms will genuinely help them to get relief. Thus, FTC laws made medical debt settlement easier.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle. Check out the following link to locate legitimate debt relief companies in your state for free help.
