Discovering the Most Significant Debt Settlement Laws
- By: Jessie Stone
Debt settlement laws are among the things that you should learn if you have made the decision to settle all of your financial obligations through the process of debt settlement. You have to learn and understand the laws of debt settlement so you can avoid being subjected to fraud. It is no longer undeniable that a lot of people who are under massive debts have been fooled by a lot of fraudulent debt settlement companies because they do not spend time researching about the laws associated to this process. If you do not want these deceitful companies to take advantage of you in your time of need, then make sure that you do your own research. This will allow you to clear your debts in the most effective manner possible.
The debt settlement laws are actually instigated by the Federal Trade Commission which is aiming to rule out all forms of fraud in the field of debt settlement. One of the most important laws that you should know is that the collection of upfront fees are considered to be unlawful. This specific law is created to ensure that only legitimate companies can cater to the needs of those who are extremely burdened with debt. With this law, fake debt relief services that are only causing a lot of mess in the field of debt settlement are banned. This allows consumers to deal with prestigious entities that are effective in getting them out of debt. If you are currently dealing with companies that collect upfront fees, then it is best for you to start looking for other options as there is a great chance that the people within the company are scammers.
The debt settlement laws initiated by FTC also states that a debt settlement company should never charge consumers for its fees if a settlement has not been reached. With this law, you are given the chance to enjoy the results of the process before you actually pay for the services. This also decreases the chances of a fraudulent company taking your payment and hiding from you without having done anything to settle your debt. The FTC guidelines regarding debt settlement also state that the company should provide its clients with full disclosure. In other words, the company will have to provide you with a number of available debt relief options and their corresponding explanations aside from the debt settlement process. This will allow you to check out if there are any other effective alternatives to debt settlement.
Debt settlement is indeed one of the most practical and legal ways to deal with your overdue accounts without having to file for bankruptcy and without having to pay for high interest and financial charges. However, you have to make sure that you are aware of how to take care of things so you can expect to produce great results within just a short period. Keep in mind that if you fully understand how the debt settlement concept works, then it will be easier for you to deal with everything along the process. It is also advisable for you to grasp the debt settlement laws so you will know which among your options are the most legitimate.
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Lee is an expert in the area of debt collections(http://credittrap.net/). Lee has been through credit card debt settlement(http://credittrap.net/) and is now debt free, he has written about his entire journey on his blog located at http://credittrap.net(http://credittrap.net/)