How new FTC Laws protect consumers in debt settlement programs

The current economy has made more people consider using a debt relief plan. Loss of income, cuts in pay and other factors have made the thought of being debt free very favorable. Many companies formed to offer debt settlement service to the consumer. However, many of these companies charged very large fees and provided little service. In an effort to correct this problem, the Federal Trade Commission (FTC) has issued new guidelines and regulations concerning what can be charged for debt settlement services.

While all these new regulations are good for the consumer, most are unaware of the new laws. Many companies are still over charging for services they are not providing. The easy solution to this problem is if you are looking for a debt relief program; use the services of a legitimate debt attorney.

A debt attorney will represent you to your creditors and begin a negotiation plan to reduce your debt. They have the ability to have interest rates lowered, fees removed and to negotiate a pay off amount. Because they are representatives of the law, attorneys are only going to charge you the legal amount they are allowed to charge.

The FTC has stated that debt negotiation companies can only charge an initial account set up fee. They can no longer charge you for services prior to performing. A debt attorney will charge you a small set up fee and will provide you with a cost analysis of what the final charges will be, prior to you signing on for the program. This will allow you to see, up front, what the costs for the program will be overall.

A debt relief program may be the very thing that you need to keep financially stable in a rough economy. However, it is very important that prior to entering the program that you hire the right type of service to help you. Your safest bet will be to go with a debt settlement attorney. This way you will know that your credit is being handled by a professional that will remain in compliance with all the laws.

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