Well, if do you, the federal Government has become more difficult for unscrupulous companies or sham debt settlement make false claims that much of your debt can easily erase.
Debt settlement or debt service relief promise - to renegotiate or somehow change what you owe an unsecured creditor or debt collector.
As the economy tanked, many people dropped their loans to consumers and as result were drawn in desperation to companies who claimed that they could, in some cases, reduce debt by half. The promised assistance could include finding ways to reduce debt balance, interest, or penalty fees.
Compliance with law enforcement officials have been receiving more and more complaints about companies that collect fees but did little, however, for the liquidation debts.The Better Business Bureau said that since the recession started in late 2007, has received thousands of complaints from consumers in all 50 States for companies in liquidation of debt that have driven people deeper in the hole, in some cases causing them to be claimed by creditors or even to have wages garnished wages.
Curb deceptive, as of Monday's practice, the new rules being implemented by the Federal Trade Commission requires that debt relief companies make specific disclosures to potential customers, such as how long it will take to get results, how much will the service cost and the possible adverse consequences that could result from seeking relief.Companies also are prohibited misrepresent what they can do to debtors, in particular, the proportion of debt that normally is borra.Por example to calculate what so well made by a company for customers, a service of debt relief must be included for those customers who have left or otherwise could not complete the program.
The new rules amend the telemarketing sales rule and specifically cover vendors phone debt relief services for profit, the included credit counseling ' offerings, debt settlement and debt negotiation services. Non-profit organizations legitimate that help people to renegotiate debts are not covered under the new reglas.Sin however, companies that falsely claim non-profit status are subject to the rules of the FTC.
It is important to take into account the rules to cover telephone calls to potential clients and calls made by debtors in response to advertisements and other requests, including persons working on behalf of a company of debt relief.
Another phase of the Act becomes effective the month that comes and significativo.A starting October 27, will be illegal for an initial debt relief service charge rates.Companies that sell their services over the phone cannot receive payment until you successfully apply or reduce a client or other unsecured debt credit card.
Rates are often based on a percentage of the amount of debt you want help with.Suppose that you owe $ 20,000 in four credit cards.You can apply a rate of 15 percent ($ 3,000) you want to reduce debt.Here is the problema.Pagaría share, no matter how many accounts, if any, they are really solved ", according to the Federation of American consumers."
There are also provisions on how to handle it with money to an offer of settlement.Customers are told to stop paying their bills and instead to send money to the company in liquidation of the debt with the intention of creditors offers a range of sum for less than what is debe.Bajo new standards, set in a financial institution insured a dedicated account, and then the money belongs to the client, you can withdraw it at any time without penalty.
These new rules are a great start first, but Congress needs to close gaps.Rules of not limited the amount of fees that can be uploaded to companies.There are simply too much space to the people of sobrecortes.El Senator Charles e. Schumer (D-n. y.) has reintroduced legislation that limits the debt settlement rates.
In addition, standards need to expand beyond the services offered by teléfono.Los debt relief suppliers meeting advise people before register them are exempt from most of the new provisions.
This effort to help curb scams, but not erradicarles.Hay too many instances of willing to obtain debtors to believe nothing if this means get relief of their bills.
"It is significant that the FTC is cracking down offending debt settlement companies, but real protection for Web-based business will mean the ability to enforce the rules, and that will be more difficult," said Chris Viale, Chief Executive of nonprofit credit counseling ' Cambridge.
If you are in debt, information about their new protecciones.De otherwise may only make a bad situation peor.Y don't believe in fáciles.Allí corrections are not any.
Readers can write to Michelle Singletary in The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.Comentarios and questions are welcome, but due to the volume of e-mail, personal replies are not always posibles.Tenga note that comments or questions can be used in a future column with the name of the author, unless indicated a specific request to do otherwise.
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