Consumers looking for debt relief as a result of financial setback or hardship are most likely to be searching the internet for the best debt settlement or debt negotiation company. Much has been written about debt settlement and the companies that provide this service, so finding reliable, professional and legal services can be a challenge for consumers, who are given conflicting information about the process. Often they will speak to several representatives of various debt elimination companies, and in the end are more confused than informed. As a result, consumers may end up believing that all debt relief companies are the same, leading them to choose based only upon fees or monthly payment.
New rules put in place by The Federal Trade Commission (FTC), the nation’s consumer protection agency, have taken effect as of October 27, 2010. These new guidelines have had an immediate effect on the way debt settlement companies operate. The rules apply to companies that solicit business over the phone, even if consumers call in to the company as a result of advertising or as a result of a visit to the company website. Here are three key principles that all companies providing debt settlement services must adhere to:
It's illegal to charge upfront fees.
Debt Settlement companies are not allowed to collect fees upfront before your debt is settled. This rule includes attorneys who provide these services. Many attorneys are collecting upfront fees by using a loophole in the law, allowing fees to be charged if there is a face-to-face meeting with the client. You are probably being charged upfront fees if the company or attorney tells you they are sending someone to your home to sign the contract.
When the company has a "performance-
They have to disclose certain information before signing people up for their services.
Debt Settlement companies must give full disclosure of how the program works, including how much the services cost and when fees are collected, how much money you need to save before the creditor is contacted, escrow accounts, anticipated length of program, how the program will affect your credit and other potentially negative consequences.
They can’t misrepresent their services.
Debt Settlement companies cannot guarantee they’ll be able to settle your debt, or settle within a certain time period. They also can’t commit to settling your debt for a guaranteed percentage off.
Many articles have been written on how to choose a company for debt help. Tips such as choosing a company that belongs to TASC (The Association of Settlement Companies) or USOBA (United States Organization for Bankruptcy Alternatives)
If you are not being charged any fees before your debt is settled, and you can cancel at any time without penalty, there is little risk to you in using that company’s services. If the program is performance-
# # #
About Premier Debt Help: Premier provides professional debt relief services to consumers struggling with credit card or other unsecured debts. Premier negotiates with creditors to have interest rates lowered and balances reduced by 50% or more, having consumers out of debt in 24-36 months with no fees charged until services are provided. Premier Debt Help has years of collective experience and knowledge in the debt settlement industry.
Our company founder is an attorney who previously represented the creditors and is now using his insider debt settlement knowledge to help resolve debts quickly. Most importantly is that we work with our clients to create the best program possible, and work our hardest to produce the best outcome, in the shortest time frame, saving the most amount of money possible.
If you are looking for debt help or considering filing bankruptcy, take a moment to look at our debt settlement program to see if it is a good alternative for your situation.