New FTC Law Enforced to Control Debt Settlement Scams
Debt has become a serious issue in the face of global economic meltdown. Presently people are submerged into the sea of debt, so the established debt settlement companies are trying to anchor them down. With the rise in debt relief programs, the market has also gauged a steady growth in the scam companies. These fraudulent companies are targeting the vulnerable debtors. Then how is it possible to believe the settlement firms? These companies are tricking the debt stricken people on the basis of providing debt relief help to them. So, the Federal Trade Commission (FTC) has been forced to implement new laws to protect the consumers from the malpractices of the fake debt settlement companies. According to the new law, the settlement companies are prohibited from taking up front fee unless they start the proceeding. The debt settlement companies have been asked to provide detailed information and maintain transparency while dealing with the clients. A written agreement of the settlement deal is required to be produced before the clients. This settlement agreement should bear the signature of the creditor as a sign of approval. Strict legal actions can be taken against the company if they fail to follow the guidelines set by the FTC. FTC has already penalized numerous debt settlement scam companies for attempting to dupe consumers. Hence, it can be expected that the new FTC law will protect the consumers the find a reliable debt settlement company to wipe out debts encumbrances from their lives successfully.
Debt has become a serious issue in the face of global economic meltdown. Presently people are submerged into the sea of debt, so the established debt settlement companies are trying to anchor them down. With the rise in debt relief programs, the market has also gauged a steady growth in the scam companies. These fraudulent companies are targeting the vulnerable debtors. Then how is it possible to believe the settlement firms? These companies are tricking the debt stricken people on the basis of providing debt relief help to them. So, the Federal Trade Commission (FTC) has been forced to implement new laws to protect the consumers from the malpractices of the fake debt settlement companies. According to the new law, the settlement companies are prohibited from taking up front fee unless they start the proceeding. The debt settlement companies have been asked to provide detailed information and maintain transparency while dealing with the clients. A written agreement of the settlement deal is required to be produced before the clients. This settlement agreement should bear the signature of the creditor as a sign of approval. Strict legal actions can be taken against the company if they fail to follow the guidelines set by the FTC. FTC has already penalized numerous debt settlement scam companies for attempting to dupe consumers. Hence, it can be expected that the new FTC law will protect the consumers the find a reliable debt settlement company to wipe out debts encumbrances from their lives successfully.
Posts
0 comments:
Post a Comment