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New - Fangled Debt Relief Rules Implemented To Avoid Rip Offs

Ever been ripped off by a debt settlement company? For such individuals there is good news, The Federal Trade Commission has issued new rules that will crack down on that industry's worst practices soon. The agency will execute such methods to stop companies from all those exuberant costs that are being charged.

Author: Nasrullah Mardani
Date: Sep 20, 2010 - 6:00:29 AM

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Ever been ripped off by a debt settlement company? For such individuals there is good news, The Federal Trade Commission has issued new rules that will crack down on that industry's worst practices soon. The agency will execute such methods to stop companies from all those exuberant costs that are being charged. They have been worst in slashing people's debt while collecting huge upfront fees.

The disadvantage encountered after these rules would be that the rules won't curb high fees and they apply only to for-profit companies that sell debt relief services over the telephone. However, here are few acts that the FTC announced in late July.

• The for-profit debt relief companies must fully disclose, starting Sept. 27, upfront how the program would be in action and when the results shall be expected. Through this you'll be able to identify what the service will cost and what negative consequences could result, such as a lower credit score.

•An individual may open a dedicated bank account that they own and control. This provision assures that the companies will get paid while protecting the consumers' money.

• The company won’t be able to show misrepresentations anymore. They can't say they're a nonprofit if they're not, or exaggerate claims about their success.

• Any amount until they settle, reduce or change the terms of at least one of your debts but not before Oct. 27. There must be a signed agreement between individual and the creditor, with at least one payment made under the agreement. Also, the company shall not be able to collect an entire fee after settling one of multiple debts.

These were the few statements of regulation provided by the FTC. The FTC is working very hard to come down on the companies that are claiming government approval. But, we have a solution for those consumers who are in debt over head. Therefore, they must follow these tips:

• Make an attempt to write down what and to whom you owe. Calculate how much the minimum payment and monthly due date is, by this you’ll be able to see your financial situation that is held. This can be a very powerful incentive to take control.

•It would be a better worthy option if you find a reputable debt counselor basically a nonprofit counseling service that doesn't charge upfront fees.

•Pick on introverts as the others would try to entice you with a government program that doesn't subsist or present you guarantee that they almost certainly can't formulate on.

•Build up a budget and stick to it. Live within your means.

• You may opt on a part-time job. Contribute all of that income to paying down debt.

•Don't overlook any sort of association from a court. Answer and clear it up, no matter even it’s a small mistake. These issues shouldn’t be further dragged.

This press release is submitted by Relief Inn which is the number one Debt Relief Company in USA

View all articles by Nasrullah Mardani

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