Consumer credit card debt relief counseling from debt relief companies or nonprofit credit counseling organizations are available across the nation and, in some cases, through national debt relief programs. However, over the past months as more consumers have had difficulty in their personal financial lives, scams have been perpetrated against individuals who thought they were getting help with their credit card debt situation.
While there are numerous reputable financial assistance companies and debt relief counseling services, consumers have been warned to heavily research any offers they make get to erase credit card debt. While the FTC has stated that, beginning on October 27, 2010, companies that sell debt relief services for a profit are no longer able to charge a fee before they settle or reduce a customer’s credit card debt.
There have been reputable debt relief counseling services who require payment up front before debt relief assistance was available, but this practice was commonly used by fraudulent companies who wish to gain money quickly and provide no service for an individual seeking credit card debt relief.
Obviously, consumers who may have been desperate or at a loss for what to do concerning their credit card debt would happily pay this fee with promises that these debt relief counseling services could drastically reduce the amount they owe to creditors. However, some consumers are left in a worse position than they had started after falling victim to these scams.
Yet, credit card debt relief counseling services from nonprofit organizations, or even for-profit companies, or still available to help consumers who may be weighted down under various unsecured debts like those from credit cards. While many advisers still suggests that consumers research any company they feel may be helpful in finding debt relief for their credit cards, these new changes from the FTC are hoped to help more consumers avoid being taken advantage of from fraudulent debt relief counseling services.