Are debt settlement companies regulated?

Are debt settlement companies regulated?

The direct regulation of debt relief services occurs on both the federal and state level, including potentially under state laws that require licensure and open the company up to state supervisory examination.

Who do I talk to about debt relief?

We recommend talking with a bankruptcy attorney first, before you pursue any debt relief strategy. Initial consultations are often free, and if you don’t qualify, you can move on to other options.

When does a debt settlement company call you?

Once the account has grown to a certain amount (this can take months and sometimes up to a year), the debt settlement company calls your creditors and begins negotiating a settlement. The settlement is an amount lower than your full outstanding balance.

Which is an example of a debt settlement program?

This area belongs almost exclusively to the debt settlement domain, but also could include personal loans you default on. Here are examples of both Suppose you have $25,000 in credit card debt and choose a debt settlement program to get the number down where you could actually pay it off.

Is there a guarantee that debt will be settled?

But debt settlement can be a long process, and no debt settlement company can guarantee results. There is a chance that you may not see all your debts settled under one of these programs.

How does debt settlement work to reduce debt?

The debt settlement company then gives you an estimate for reducing your debt along with a new, lower monthly payment. As advised by the settlement company, you stop paying your creditors and instead send payments to the debt settler.

How to find a reputable debt settlement company?

  • Review the American Fair Credit Counsel (AFCC) list of accredited members
  • Get a free consultation from Bill.com’s pre-screened providers
  • by checking other resources

    Can you really trust a debt settlement company?

    You can also trust a debt settlement company if it’s been in business for five or 10 years. The con artists generally open up under one name, scam as many people as they can, close down and then open up a few months later under a new name.

    Do debt settlement companies usually charge a fee?

    Debt settlement companies may also be known as “debt relief” or “debt adjusting” companies. The companies generally offer to contact your creditors on your behalf, so they can negotiate a better payment plan or settle or reduce your debt. They typically charge a fee, often a percentage of the amount you’d save on the settled debt.

    Should I do debt settlement on my own?

    While there are no guaranteed results with debt settlement – through a company or on your own – you’ll at least save yourself time and fees if you go it on your own. If you decide to negotiate with a creditor on your own, navigating the process takes some savvy and determination. Here’s a step-by-step breakdown.