The FTC laws on the debt relief companies

The Federal Trade Commission or the FTC, had passed on a new set of law or rules on the debt relief companies in order to save the consumers from scam companies. It mainly prohibits the for-profit debt relief companies from charging any kinds of upfront fees for the services that they offer you to get out of the debt problem you are in.

The FTC law

The law was introduced on 27th October, 2010 and these laws are:

1. Upfront fees – It prohibits the debt relief companies from charging any fees from the consumers until they are able to successfully negotiate with the creditor.

2. Amount to be saved – The FTC requires the debt relief companies to provide details on the amount that the debtor will have to save in order to pay.

3. Fundamental information – The debt relief companies are required to provide fundamental information on the debt relief process starting from the costs and the time it may take you to become debt free. Other than that the relief companies are also supposed to talk to you about the effect of the process on your credit. The FTC also prohibits the companies from providing any kind of misconceptions about the debt relief process.

so, if you are going to get help from the debt relief companies for getting out of debt, it is important for you to know the FTC law in details.