Debt Settlement

Debt Settlement Consumer Protection Act

There have been many people that have applied for home loans and applied to agencies that claim to be able to get hem out of debt or help them to get a loan and they have been defrauded and led along a path that has put them in debt. Due to this constant action the courts have put into place an amended law called the Debt Settlement Consumer Protection Act.

Debt Settlement Consumer Protection Act
The debt settlement consumer protection act according to the Library of congress prohibits debt settlement providers from receiving a fee for their services without providing a written contract specifically stating what the consumer is paying for and why. This Act can apply to loans, offers of credit, mortgages, and 3rdparty compensation ad purchasing debts. The providers can charge an enrollment fee or a settlement fee and that is it.

The law states that a debt settlement provider has to hold any funds given to them by the consumer in a trust account that is not affiliated with the company in any way. The law also states that the consumer can cancel their contract at any time in accordance with the agreements stated in their contract. If a debt settlement provider does not comply with these rules that civil action can and will be brought against them in federal court.

Conclusion
Consumers have been taken advantage of for years and the amendment that has been made to the Protection act in 2010 has made it possible for consumers to feel better about applying for loans and fixing their credit issues without worrying that they will loose money in the process. The economy has suffered enormously due to the foreclosures and employment downsizing and there are so many businesses out there that are trying to take advantage of consumers to make a quick dollar, but hopefully with this act in place the ability of these agencies to defraud the consumer are few and far between. If any consumer feels that they have been defrauded they can bring a suit against the provider and hopefully they will be brought to justice. The best thing a consumer can do before applying for anything is to do the research and make sure the agency is legitimate and experienced. online pharmacy viagra

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