subject: FTC and Debt Settlement - How New Government Reforms Ensure Validity of Debt Settlement Programs [print this page] The names of FTC and debt settlement will be taken in the same breath now after the implementation of the new rules proposed by the Federal Trade Commission. Though it is still time for the new regulations to come into effect, it has already generated enough buzz in the market. There are, of course, reasons for it. The new government reforms are formulated with the intention of ensuring a fairer and transparent method of debt settlement for the consumers.
Stories abound where the defaulters have had to go through a lot of problems in settling their dues with the help of a settlement company. They were made to pay substantially for the services they provided and in some cases they were not even successful in their endeavor. However, all of these will become a thing of the past when the new laws come into force.
As per the new reforms of the FTC, a settlement company is accountable for every move that it takes to the defaulter. It has to explain comprehensively the amount of time that a particular deal can take and the fees that it will amount to in such a case. Most important of all, the company can only hope to get paid from the consumer if it has successfully done its job and made the person free of dues permanently. This was not the case earlier. Most companies used to demand up-front fees without providing the guarantee that they will be successful. However, they can no longer do that. That means the companies now have to give utmost importance to performance. The whole policy of the companies will undergo a change. They have to shift their attention and concentrate mainly on performance as that alone will ensure profit for them.
It can be said without doubt that the new government reforms will make sure no one is duped at the hands of the settlement companies. You no longer need to be afraid of the dubious and shady relief companies since even they will have to abide by the guidelines. There is also a fine of a significant amount in case any company violates the law. The fine amount is a whole $16,000. That means a settlement company will think twice before indulging in any malpractice in relation to cost or fees. Therefore, if you are thinking what is the right time to clear off your dues, this is the moment you have been waiting for.
Debt settlement is a legitimate alternative to bankruptcy.
FTC and Debt Settlement - How New Government Reforms Ensure Validity of Debt Settlement Programs
