Tag Archives: DebtConsolidation

You’ve likely heard the stories of fly-by-night companies that offer to get people out of debt, only to make matters worse by setting up an agreement that only causes the customer to fall further into debt. The Better Business Bureau confirms the stories you might have heard: 2,600 complaints were logged against debt relief companies in 2010 alone. In response to these types of reports, the Federal Trade Commission issued new guidelines for debt relief companies that took effect in September 2010. In order to protect consumers from predatory practices, the new FTC rules on debt relief offer the following protections: A debt relief company cannot collect up-front fees from a customer until a written agreement is in place. It is also the debt relief service’s responsibility to have repayment agreements in place with a client’s lenders before it collects any money from that client. Debt relief companies must provide…
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