A look at how the new laws for debt relief will affect bad credit debt consolidation.
If you are not aware of the new rules for bad credit debt consolidation you need to be. Regulation and laws that resulted from a 229 page report released by the FTC have caused a sea change in the way debt relief firms now operate. Along with the Better Business Bureau and the Association of Settlement Companies the FTC is working to protect consumers. The old ways of doing business have been replaced and an honest industry is now emerging. Being aware of the new laws and how they protect debtors is a consumer responsibility. In short, know your rights and don’t get scammed.
Bad credit debt consolidation loans used to exist in a legal gray area that allowed fraudulent companies to operate. A major protection has been put in place. Regulation now requires that a bad credit debt expert must show a result before the customer can be charged. Previously, it was possible for unethical companies to charge up front fees and then produce no results. These companies are being eliminated by new laws.
Customers also used to wait without contact from their debt consolidator. Months could go by with the customer thinking that it was acceptable to not make payments because of the debt relief help only to be shocked to discover that creditors became angry at lack of payment and took legal steps. Now a bad credit debt consolidation company must regularly update customers preventing this scenario from happening.
It was once considered a credit "crap shoot" to take debt help because customers would not find out until the end of the process what would happen to their credit rating. This situation has also changed under new laws as a bad credit debt consolidation firm must tell clients up front what effect their services will have on the credit rating. This simple change removes any chance of credit shock.
With the opportunity to turn multiple payments into one lower payment and eliminate the potential fro multiple fees bad credit debt consolidation loans are a way to manage problems for people with $10,000 or more in debt. For advice and help finding a reputable debt consolidation, follow the link below to a Free Debt Relief Network-http://www.debtreductionexpert.com/?id=4444
Bad credit debt consolidation loans used to exist in a legal gray area that allowed fraudulent companies to operate. A major protection has been put in place. Regulation now requires that a bad credit debt expert must show a result before the customer can be charged. Previously, it was possible for unethical companies to charge up front fees and then produce no results. These companies are being eliminated by new laws.
Customers also used to wait without contact from their debt consolidator. Months could go by with the customer thinking that it was acceptable to not make payments because of the debt relief help only to be shocked to discover that creditors became angry at lack of payment and took legal steps. Now a bad credit debt consolidation company must regularly update customers preventing this scenario from happening.
It was once considered a credit "crap shoot" to take debt help because customers would not find out until the end of the process what would happen to their credit rating. This situation has also changed under new laws as a bad credit debt consolidation firm must tell clients up front what effect their services will have on the credit rating. This simple change removes any chance of credit shock.
With the opportunity to turn multiple payments into one lower payment and eliminate the potential fro multiple fees bad credit debt consolidation loans are a way to manage problems for people with $10,000 or more in debt. For advice and help finding a reputable debt consolidation, follow the link below to a Free Debt Relief Network-http://www.debtreductionexpert.com/?
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