Uniform Debt-Management Services Act – Simplified
In 2005, The National Conference of Commissioners on Uniform State Laws adopted a new legislation for regulating how the law viewed certain matters involving debt management, debt pooling, debt adjusting, debt settlement, debt relief and much more. These different factors vary as far as how they are handled, however the legislation was passed in order to provide rules for governing consumer credit counseling services. This would also include debt settlement services as well.
Credit card debt settlement and consumer credit counseling has been available to consumers as early as the 1950’s. There are about two types of services available. Most of the time, these services are provided by programs and financial advisors who will negotiate on the debtor’s behalf for a lower interest rate. This will allow the consumer to have a higher chance of paying off the debt in a timely fashion.
Other debt management services will reach an agreement with creditors in order to get rid of a percentage of the debt. The entire goal is to avoid bankruptcy; which is the only way to stop creditors from trying to get debt owed by garnishing paychecks and taking assets and property.
Credit card relief services have a somewhat checkered past. Some investigating agencies have noted abuse from such services. Some financial investors argue that debt settlement services end up steering the consumer away from filing bankruptcy, when in reality they might saved more money if they go this route.
The federal bankruptcy reform which was put into effect in 2005, has somewhat changed the way these services are handled. If an individual wants to file for Chapter 7 bankruptcy,they will need to prove that they have sought help from debt education and credit counseling services.
A debt settlement attorney will usually follow the rules of this legislation that was passed in 2005. According to the UDMSA, providing services is split into three basic parts; service-debtors agreements, registration of services and enforcement.
A debt settlement attorney will make sure that certain rules are enforced. They also look for misuse of funds in trust or any other type of abuse (such as the creditor settling for more than 50% of a debt without the debtors knowledge). This is extremely important when it comes to credit card debt.
There are certain financial institutions that are not required to follow the Uniform Act, such as the banks. The UDMSA is an essential part of the law when it comes to regulating debt settlement services. casino en ligne francais
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