Desperate people resort to desperate measures. Unfortunately, there is always someone out there ready to take advantage of another person's tragedy and to make a quick buck doing so. As the economy struggles toward recovery, high unemployment, new layoffs, diminished wages and benefits, tight credit and aggressive foreclosure actions have continued to take a financial toll on American consumers. Too many people have reached or are approaching the end of their financial rope. In desperation they cling to the promises of debt-settlement companies that vow to get them out from under crushing debt quickly. Sadly, many highly advertised debt settlement firms, instead of providing consumers with promised relief, bleed them dry, leaving them further in debt with their financial problems still unsolved.
Responding to a deluge of consumer complaints about fly-by-night debt-settlement companies, the Federal Trade Commission (FTC) has just implemented new rules under the Telemarketing Sales Rule aimed at ending flagrant abuses in the for-profit debt-counseling industry. Dedicated professional credit repair professionals applaud the FTC's steps to protect consumers. There's a real need for well-trained professional credit repair professionals and debt counselors in America today. Legitimate credit repair firms suffer along with consumers when scammers fail to deliver promised services.
Before they sign on the dotted line, credit repair professionals urge consumers to investigate several different credit repair firms and compare credentials, services and prices. Consumers should also check with the Better Business Bureau to see if any complaints have been lodged against the company. Choosing to work with an established, respected local attorney who offers professional credit repair services is a good way to ensure that you are placing your financial future in good hands.
Savvy consumers shopping for credit repair or debt settlement assistance should be aware of the following new FTC rules:
- Debt-settlement firms cannot collect any fees from consumers until they have successfully renegotiated or settled the consumer's debt.
- Firms may not charge any fees until they have received a written agreement of services from the consumer.
- Debt-settlement firms cannot require consumers to open dedicated accounts unless certain conditions are met. For example, consumers must have the right to withdraw all of their funds from the account without incurring a penalty.
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Firms must warn consumers of the risks incurred by withholding payment from creditors.
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Matt
Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street Suite 402
East Hartford, CT 06108
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