subject: Debt Relief - New FTC Rule The Guide To Enable Debt Reduction [print this page] There has been a steady growth in the number of companies toady who sell relief services to the debt ridden customers. There are many who go ahead and advocate their services on the phone. People go ahead and fill in vital details to these companies in assurance that they would be helped and pulled out of their debt condition. Many companies have asked customers to go ahead and pay the fee much in advance before the services are rendered. According to the new FTC laws it is against the law to charge fee to the customer before the service has been availed by the customer.
In the recent past there have been several instances where innocent people already in financial debt trouble have been robbed off their money after the customers have paid money to the companies in an effort to get debt relief. The rule also extends to the fact that the companies now need to make special disclosures regarding the service they provide. They will need to let the customer need to know the fee they will be charged and their scope of work which they would be taking over if the deal in signed off between the customer and the company.
Any kind of misrepresentation of facts will be against the law. Therefore the companies need not go ahead and make false promises to the customers that they would be getting x percentage of relief which is something which cannot be determined without speaking to the creditors. The last but not the least these rules would be extended to those companies also who advertise for their business and get calls from customers seeking help from the companies.
This rule is extended to all debt relief companies, counseling agencies consolidation and settlement companies. This rule is not for registered non profit making bodies . There are many who falsely claim to be a non profit making body the new rule would be applicable for them as well. I have discussed a few pointers regarding the new FTC rules which have come into force. It would make sense that all debt holders get their act together and make an effort to know these rules as it has been made and designed to protect them from companies with low integrity and practice.
Debt Relief - New FTC Rule The Guide To Enable Debt Reduction
