FTC Attempts to Rescue Consumers from Debt Settlement Schemes
Last month, the Federal Trade Commission (FTC) instituted new rules that will now force debt settlement companies to be more frank and honest with consumers who utilize their services.
Under the new rules, debt settlement companies are:
- Banned from lying to consumers with guaranteed results including offering to cut debt in half or affordable payments
- Required to provide consumers an upfront estimate of all costs involved in settling their debt in writing
- Required to indicate the timeframe needed to reduce the debt to achieve the results as promised
- Required to inform consumers of anything that may reflect negatively on their credit or FICO score
The new rules go even further in that they allow consumers to avoid paying the debt settlement company anything unless the company ultimately reduces, or even settles their debt.
As indicated above, “Debt settlement” often is far from what consumers think when they first venture in and trust the Debt Relief Consultant. We have found that Consumers are often misled and while attempting to avoid filing for bankruptcy, ironically, end up getting themselves deeper in debt and an endless slide of their credit scores.
Contact a Bankruptcy Attorney
Filing Bankruptcy may be the most effective and quickest way to immediately obtain Creditor Relief and start rebuilding your Credit. Today, many people in all demographics are turning to bankruptcy protection for help. It is a prompt resolution to the financial turmoil many people have found themselves trapped in.
If you are overwhelmed by your debt and you are considering bankruptcy, there is no better advice than to speak with an experienced bankruptcy attorney. A qualified and knowledgeable lawyer can answer questions and help determine if bankruptcy is right for you.