Debt Settlement Companies Under Stricter Guidance

Debt Settlement Companies Subjected to New FTC Regulations

Debt settlement companies that perform services over the phone will be subjected to stricter regulations come October 23.

The FTC is imposing rules that include the following:

1.  Full disclosure of how long the process will take.

2.  Total costs related to the debt settlement process.

3.  Any potential negative consequences that may result from the process.

One of the biggest changes involve not being able to charge any fees until a debt has been settled reduced or completely rendered.

Some debt settlement companies have been reorganizing their operations so that the initial interaction between the consumer and the debt settlement company will occur in person.

This will allow the debt settlement company to avoid some or all of the new requirements.

Posted by James Fried on Sunday September 26 2010, 11:14 PM EST. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0