debt settlement companies
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Debt Relief Companies Now Subject To Tougher Rules
Since the recession started, individuals have been doing more to get rid of debt. Consequently, television and e-mail in-boxes have been inundated with ads from businesses providing debt relief and debt consolidation reduction loans. The government does notice these things. In order to keep fraudulent corporations in line, greater regulations were put in place on debt consolidation reduction companies. Customers have to look after what company they’re giving instant money to. Those companies might be all for naught.
The FTC plans on stopping debt relief fraudulence
The Good Recession was an excellent opportunity for many corporations. Fast debt settlement and debt consolidation loans started to be offered. All a consumer had to do was hand over an upfront fee and make monthly payments, and their debt would be gone before they knew it. A lot of these companies turned out to be taking a cash advance for services which were never rendered. After a lot of grievances to the Federal Trade Commission, new guidelines were imposed in late Oct. Many attorneys general in states have been filing suits against these companies since the abuse has continued. A common scam is to ask for some money now for a retainer and say a staff attorney will get an individual the debt settlement relief he or she needs, according to the Financial Times. The money is taken by the supposed “company.” Nothing is ever settled though.
Staying cautious with debt settlement programs
It’s probably too good to be true if something seems too good to be true. There are some things to be careful when looking into consolidating debt through an agency. Do not go with businesses that require an upfront fee for debt consolidation reduction. It is going to be a scam probably. Debt management is something many non-profits are willing to help with. Always check out a potential debt settlement business with the Better Business Bureau and the National Association of Financial Advisors.
What else to try and do
If you’re trying to get rid of debt like personal loans, personal financing, or charge cards, there are always things that could be carried out. Sometimes you can get a payday loans to help with some creative budgeting as well.
Citations
FT
ft.com/cms/s/0/8b73b788-f5c6-11df-99d6-00144feab49a.html#axzz16857y44E
NAPFA
napfa.org/tips_tools/index.asp