Syracuse (WSYR-TV) - Everyone has heard the ads for companies that promise to reduce credit card debt. For years, they've been charging big bucks upfront to help but, very soon, they'll have to follow a new set of rules.
What is the Real Deal on how the feds are reining in debt settlement companies?
Debt settlement should be a last resort to bankruptcy as it is, but the companies that offer this service now have to be a lot more upfront about the terms and they can't make customers pay for their services, until after they've actually lowered your debt.
As of October 27, any company that offers debt relief services over the phone cannot collect a fee until the client's debt has been successfully negotiated down, there is a written agreement and debt management plan in place and the client has made at least one payment on the lower debt. This is a big change because, most of the time, these companies make customers pay them first and do very little to actually help you get back on track.
If you're having problems keeping up with their payments, try credit counseling first. Locally,
Consumer Credit Counseling Service can be found in Syracuse. They're a non-profit and can try to help you get back on track.
