FTC meets with AFSA regarding debt settlement.

Lexington, KY. September, 16th, 2008

With the recent credit crunch in the US economy, the debt settlement industry has been booming. Last year at this time there were around 300 debt settlement companies. That number has more then tripled in the past year to over 1,000. The problem is that many debt settlement companies are engaging in questionable practices.

Debt Settlement companies claim to “save you up to 60 cents on the dollar” This certainly sounds great to a vast majority of consumers who are drowning in credit card debt. The issue is that these companies are often times misleading in the actual affects of debt settlement to the consumer. The companies focus on how they will save all kinds of money but do not touch on how the consumer’s credit will take a hit. During the negotiating period, the client’s creditors are not receiving payment. This lowers the credit score of the customer and should be fully disclosed. It does not stop there.

The creditors are also being handled with questionable methods on the back end as well. Creditors have found that debt settlement companies falsely claim that the consumer’s account has been previously disputed by the consumer, even though there is no record of a prior dispute. These particularly unscrupulis debt settlement or debt validation companies will dispute a debt when the consumer does not, in fact, dispute the history of the debt.

The afore mentioned practices are enough cause for the Federal Trade Commission and the American Financial Services Association to hold a meeting this month to highlight and further regulate the for-profit debt settlement industry. As an advocate of stronger regulations in the debt settlement industry, a senior member of GoDebtRelief will be attending this meeting in Washington.

As a reputable company in an industry with bad blood, GoDebtReleif is excited about the changes that lie ahead after this meeting. Debt settlement does help consumers get out of debt. Consumers need to be fully aware of what they are getting in to and should not be afraid to ask the hard questions. Before entering into a Debt settlement program, candidates should always review the professional record of the companies they are looking to get involved with.

www.GoDebtRelief.com

Go Debt Relief offers assistance for consumers struggling to make monthly payments toward their debt.

Jarod Thornton, Director of Operations
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