a 2010 survey by the US Government Accountability Office revealed that 17 out of the 20 companies violated the upfront fees requirement
Phoenix, AZ (PRWEB) July 07, 2014
Debt Consolidation USA explains in a recent article published last July 4, 2014 how consumers can perform debt settlement on their own. The article titled “3 Things You Need To Know Before DIY Debt Settlement” talks about tips for consumers to look into when deciding to use debt settlement by themselves.
The article shares how people are growing concerned about the scam companies proliferating the debt settlement industry. It further shows that a 2010 survey by the US Government Accountability Office revealed that 17 out of the 20 companies violated the upfront fees requirement. A company asking for an upfront fee before performing debt settlement procedures on an enrolled debtor is not allowed. There were only a few legitimate companies that did not require upfront fees.
A consumer taking on debt settlement on their own should first know who the lenders are. It will be quite hard to negotiate debt settlement when the lenders are not properly identified. The article explains that once a consumer starts talking to the lender, it is important to realize that consumers are at the asking end of the line and should stay at the lender’s good side.
It will help the consumer as well to realize that the lenders are just looking out after their business. The consumer has to realize that they are asking that the company they owe money to agree to a lower payment amount and in turn, result to losses in the lender’s portfolio. It is because of this that the lenders will haggle on the amount to be able to collect as much as they can.
The article also talks about the consumer’s rights once the debt has been sold by the original ender over to a collection company. This is a common practice by lenders wherein they unload bad debts over to collection companies selling them at a lower rate.The idea is that they want to be able to get back as much as they can before taking it off the books.
The consumers has to understand that collection companies earn when they are able to collect the debt. This is the reason why some collection companies resort to scare tactics and harassment calls just to be able to collect from unsuspecting debtors. It is important to take note that collection companies are prohibited by law in making false statements just to collect money from a debtor. They are also not allowed to divulge any information pertaining to a consumer’s debt in the hopes of embarrassing the debtor.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/debtsettlementadvice/3-things-need-know-diy-debt-settlement.html