Most companies who advertise
themselves as debt relief providers actually offer a debt consolidation service, a debt negotiation service, debt consolidation loans, debt settlements or a combination of two or more of them.
If you were to work
as a debt relief provider today, would it be as a bankruptcy attorney, a credit counselor (DMP provider), a negotiator (debt settlement), or something else entirely?
Not exact matches
This is the exact same problem every
debt relief provider faces
as they become successful.
For many years
debt relief plan
providers, such
as nonprofit credit counselors, and
debt settlement service
providers, have been seen
as two separate and distinct structures in the
debt relief services industry.
Think of
debt consolidation
as «getting all your
debts under one roof,» explains Kevin Gallegos, vice president of Phoenix operations at
debt relief provider Freedom Financial Network.
Each
debt relief provider will naturally try to push their solution
as the best.
The change is that companies offering
debt relief services over the phone can not collect advance fees from you before settling or reducing your
debt, before having an agreement for
debt management or other services in place, or until you've made at least one payment to a creditor
as a result of a plan negotiated by the
debt relief provider.
Debt settlement is a debt relief program that negotiates and settles your debts for less than you owe, many times reducing debts by as much as half, before provider f
Debt settlement is a
debt relief program that negotiates and settles your debts for less than you owe, many times reducing debts by as much as half, before provider f
debt relief program that negotiates and settles your
debts for less than you owe, many times reducing
debts by
as much
as half, before
provider fees.
As discussed in detail in this SBP, the Final Rule addresses deceptive and abusive practices of
debt relief service
providers and includes the following elements: