Recently, the FTC passed new rules on not only mortgage assistance relief programs, but also to relief organizations which are said to help consumers with various forms of debt which may be problematic in their life. Previously, rules were changed concerning debt relief services and the way that certain companies could collect fees from consumers who are in need of credit counseling or debt assistance.
However, new rules were recently implemented by the FTC in the hopes of preventing mortgage assistance scams which have become more problematic over the past months. Many fraudulent debt relief services or mortgage assistance organizations often collected fees up front, which obviously put homeowners and consumers in a difficult position when these companies did little or nothing to help improve their financial situation.
Many homeowners who are in need of debt relief, like those who are overwhelmed with credit card debt, have been taken advantage of by fraudulent debt relief services who, again, asked for upfront fees in return for help. Oftentimes, these fraudulent companies simply did nothing or may have continued charging fees but really did little to erase consumer debt.
As with fraudulent mortgage relief companies, these upfront assistance fees were usually collected from homeowners or consumers in a dire situation who felt that one of these assistance organizations could help them gain control of their personal debt troubles. Yet, laws which have been implemented to prevent these fraudulent organizations from taking money from consumers before assistance has been given are hoped to cut down on the amount of scams which are being perpetrated against homeowners and consumers.
However, no matter what company a homeowner uses for their mortgage assistance or debt relief needs, advisers suggest that research take place on the part of the consumer so that fraudulent organizations will not take advantage of those who are in a bad financial position. Resources that range from Google to the Better Business Bureau are available to consumers who are working with a particular organization and these avenues of research will typically yield ratings or reviews on specific companies and can help consumers avoid these shady organizations.