Debt settlement licensing requirements

Changes have been made in debt settlement licensing requirements. It has been passed by the Federal Trade Commission giving protection to the consumers from fraud or scam settlement services. In a settlement program, you are required to hire a legal and reputed settlement firm. Initially, the settlement firms charged an upfront fee from you at the beginning. At that time there were no guarantees of reaching a debt settlement.

The new law states that you need to pay the charges of the companies only after your dues are actually settled. Once the dues are settled you are eligible to pay the fees of the companies. Many scams or fraud firms are also present in the industry. They extort money and do not help you in the future. Now, with the change in the law, most scams have wrapped up and gone into hiding. Only legitimate and reputed companies are operating in the industry. However, if the companies do not maintain the laws then a certain amount is charged as a penalty. The amount is $16000. As it is easy for you to opt for this method, evaluate the same much before you think of filing bankruptcy.

You can opt for bankruptcy too, but due to its negative impacts, it is considered to be the last remedy. It creates negative impacts on both the creditors as well as the debtors. Bankruptcy is no more an easy way out with stringent eligibility and regulations introduced by the government. Therefore, it is better to opt for a settlement plan. As the new debt settlement laws have been introduced, no company can charge any fees from you before the process rolls.

You have to hire a legitimate company. They take all the responsibilities and perform on your behalf of you. They contact the card companies and convince the loan providers to negotiate your outstanding balance up to 40%-60% of the original. Once the creditors agree to the settlement process, you start making payments to the credit card companies. The main benefit of this method is that it takes 1-3 years to relieve you from the burden of arrears. After you reach your final destination of settlement you can finally pay the dues to the firm. Hence, before filing bankruptcy think about the settlement plan as you receive many benefits from it.

The debt settlement laws encourage debt-ridden consumers to seek help from this method. It is a much better and viable alternative to insolvency.

It would be wise to utilize a debt relief network if you are considering getting a debt settlement. The top debt relief networks are only affiliated with the best-performing settlement companies that are established and proven. Visit our website debtmanagementlicenses.com to read more information.