Debt Settlement Companies Must Follow These Laws
June 18, 2012 By Melvin R. Singleterry - Associated Attorneys, LLC
Being in financial distress due to credit card or other unsecured debt, can puts a lot of stress on many Americans and most of those people seek out the help of an honest and reliable debt settlement company. Unfortunately, a lot only find dishonest and unreliable providers who will not disclose any information about themselves or the service they provide.
When choosing a debt settlement company, the most important thing a consumer can do is research each company through the Better Business Bureau first to see if they have had any complaints. And, remember that just because a company has had no BBB complaints does not mean they are perfect it just means they have not been caught.
The debt settlement company you decide on is one of the most important financial decisions you will make so the more information you can get, the better off you will be in the long run. You need to know as much information as possible, not only about the person or debt settlement company but about the process, cost, and fees. In addition, you need to know how using a debt settlement company will affect your debt settlement not only in a positive way but also in a negative way as well. If the debt settlement company you are talking to is unwilling to provide you with full disclosure of all information, find another one.
On October 10, 2010 the Federal Trade Commission in its Sales Marketing Rule, issued prohibitions in regards to misrepresentations a debt settlement company may make and also required them to make certain disclosures. According to the FTC’s Sales Marketing Rule, all debt settlement persons or companies must make certain disclosures when telemarketing their services to the public. Before any person signs up with any debt settlement company, the company must disclose things like, how long it will take before results are seen, the positive and negative consequences as a result of using a debt settlement company, information about dedicated accounts and how much the service will cost.
In addition, all debt settlement companies or persons must disclose how the process might affect a person’s credit rating, what the possible tax consequences are. All debt settlement companies are also required to disclose what their fee structure is, how long before the provider makes offers to creditors, and how much money the consumer will need to have before offers are made to the creditors. The Federal Trade Commission’s Facts for Consumers warns of certain signs, which consumers should be aware of including the following:
- Charges fees before it settles your debts.
- Guarantees it can make your unsecured debt go away.
- Tells you to stop communicating with your creditors.
- Guarantees that your unsecured debts can be paid off for just pennies but won’t send you information about the services it provides without requiring your personal financial information.
- Offers to enroll you in a Debt Management Program (DMP) without teaching you budgeting and money management.
- Demands you make payments into a DMP before your creditors have accepted you into the program.
ABOUT THE AUTHOR: Melvin Singleterry
At Associated Attorneys LLC, you will get full disclosure of all information with no misrepresentations as this would go against their code of ethics.
Copyright Melvin R. Singleterry - Associated Attorneys, LLC
More information about Melvin R. Singleterry - Associated Attorneys, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The debt settlement company you decide on is one of the most important financial decisions you will make so the more information you can get, the better off you will be in the long run. You need to know as much information as possible, not only about the person or debt settlement company but about the process, cost, and fees. In addition, you need to know how using a debt settlement company will affect your debt settlement not only in a positive way but also in a negative way as well. If the debt settlement company you are talking to is unwilling to provide you with full disclosure of all information, find another one.
On October 10, 2010 the Federal Trade Commission in its Sales Marketing Rule, issued prohibitions in regards to misrepresentations a debt settlement company may make and also required them to make certain disclosures. According to the FTC’s Sales Marketing Rule, all debt settlement persons or companies must make certain disclosures when telemarketing their services to the public. Before any person signs up with any debt settlement company, the company must disclose things like, how long it will take before results are seen, the positive and negative consequences as a result of using a debt settlement company, information about dedicated accounts and how much the service will cost.
In addition, all debt settlement companies or persons must disclose how the process might affect a person’s credit rating, what the possible tax consequences are. All debt settlement companies are also required to disclose what their fee structure is, how long before the provider makes offers to creditors, and how much money the consumer will need to have before offers are made to the creditors. The Federal Trade Commission’s Facts for Consumers warns of certain signs, which consumers should be aware of including the following:
- Charges fees before it settles your debts.
- Guarantees it can make your unsecured debt go away.
- Tells you to stop communicating with your creditors.
- Guarantees that your unsecured debts can be paid off for just pennies but won’t send you information about the services it provides without requiring your personal financial information.
- Offers to enroll you in a Debt Management Program (DMP) without teaching you budgeting and money management.
- Demands you make payments into a DMP before your creditors have accepted you into the program.
ABOUT THE AUTHOR: Melvin Singleterry
At Associated Attorneys LLC, you will get full disclosure of all information with no misrepresentations as this would go against their code of ethics.
Copyright Melvin R. Singleterry - Associated Attorneys, LLC
More information about Melvin R. Singleterry - Associated Attorneys, LLC
View all articles published by Melvin R. Singleterry - Associated Attorneys, LLC
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
