Harsher regulatory guidelines for debt relief firms

The number of corporations providing debt settlement or debt consolidation loans has been exploding. In order to crack down on fraudulent practices, the govt has enacted stiffer rules on debt consolidation services. To keep from throwing instant cash away, consumers ought to always take a look at a debt consolidation business soliciting their business. Source of article - Debt relief companies now subject to tougher regulation by Money Blog Newz.

Stopping debt relief fraud is the Federal Trade Commission

As the Great Recession started, companies began springing up all over the place, providing fast debt settlement and debt consolidation loans. Customers were required to give an upfront fee and then make monthly payments. This would make all the debts go away for them. Many corporations ended up not actually giving the services although they’d still take the cash. In October, new rules were added due to grievances to the Federal Trade Commission. However, abuses have continued, and attorneys general in several states have been filing suits against the impostors. Many people end up falling into the scam of giving money no in order to have debt settlement relief coming later. This is what the Financial Times explains. Then, the "company" pockets the cash and never settles a thing.

Many debt settlement programs that need to be ignored by you

Sometimes things come along that seem too good to be true. It probably is then. If you plan on consolidating debt through an agency, there are things to be careful of. You need to watch out for these things. Do not go with businesses that require an upfront fee for debt consolidation. It is going to be a scam probably. Debt management is something many non-profits are willing to help with. The Better Company Bureau and the National Association of Financial Advisors are where you should check potential debt settlement corporations with.

Stuff you are able to do within the interim

Debt like credit cards, private loans and personal loans can be really overbearing sometimes. You will find things that could be done with these though. Some creative budgeting always helps or payday loans if a buffer is needed.

Citations

FT

ft.com/cms/s/0/8b73b788-f5c6-11df-99d6-00144feab49a.html#axzz16857y44E

NAPFA

napfa.org/tips_tools/index.asp