Debt settlement complaints

In recent years, the consumer complaints against the debt settlement industry have risen phenomenally.

This is because the last few years hundreds of new companies were created, all offering debt relief.
The thousands of Americans who are in financial troubles went to those companies to get rid of their debts. But because this market is largely unregulated, the consumers didn't get the results they wanted.

A solution to this problem could be the regulation of the debt settlement companies, which would create more consumer protection.
A lot of American states already do this, but more and more states are thinking about it, because the complaints keep rising.

I think this bill should be accepted as soon as possible. The economical crisis is affecting the normal people the most (the working class). Having so many problems with the debt settlement companies won't help them.
Also the debt companies should be more human. A lot of Americans are struggling to survive and still the companies don't give the services they promise.

They also give some tips here before choosing a debt relief program:

• Determine if debt settlement is right for you (Is there no other option to save you from bankruptcy?)
• Understand the process (How do debt settlement companies cut your debt in half?)
• Check out the payment structure (When do you have to pay and how much?)

I think these questions are very good. You should try to answer them first before going with a debt settlement. You need to know what and how a debt settlement works before you can actually use it, otherwise it could go terribly wrong.

Written by Dieter De Smet

Source: http://www.americanconsumernews.com/2010/02/debt-settlement-complaints-on-the-rise.html