As a result, several
debt settlement companies representing the bulk of debt settlement clients are facing legal challenges from multiple states.
Debt settlement companies represent that they can substantially reduce consumer debt by negotiating directly with creditors, on behalf of their customers, to pay off outstanding balances at less than the amounts owed.
Not exact matches
Also referred to as
debt negotiation,
debt settlement is a practice where an individual or a third party
company hired to
represent an individual, negotiates with a creditor to reduce the balance needed to pay off an account.
This means that the
debt settlement company will actively
represent your case to the creditor.
At times, the creditor will refuse to cooperate with the debtor in a
debt settlement and so most
debt settlement companies have certain guidelines and eligibility requirements to ensure that they are
representing a qualified debtor.
Once you hire a
debt settlement company to
represent you, they would be able to conduct all negotiations for you and utilize their knowledge and skills to work out a
settlement with best possible terms.
The speakers, some
representing debt settlement companies, did a good job of covering some of the more common issues within the industry.
Hence, it is very important that individuals find a good
debt settlement company that helps them save money from the outset of the program, and thereby
represents their best interests.
When fraud or
debt collection violations are found
debt may get settled for even less if the
debt settlement company or attorney uses these violations as leverage, or with an attorney
representing you the
debt could get dismissed where you pay nothing besides for the attorney fees.
Panelists
representing debt settlement companies, consumer advocates, regulators and other interested parties weighed in on the effects that
debt settlement companies have on consumers.