Whether you’re up to your neck in bills or are simply carrying a little more debt than you’d like, you might want to learn more about credit card debt settlement in San Diego. There may be options to help you reduce or eliminate your balances, but settlement negotiations are often impacted by trends in the industry. Check out the latest news on credit card debt settlement to become familiar with how these companies work and the factors that affect their operations.
Latest news on credit card debt settlement
FTC Bans Upfront Fees for Debt Settlement Firms: Debt settlement companies that contract with consumers to lower credit card debts are prohibited from charging fees until after they obtain relief under Federal Trade Commission rules. The regulations were issued in response to numerous complaints from consumes stating that unscrupulous companies weren’t delivering on their promise to reduce customers’ debts – despite requiring high monthly fees.
Instead of actually settling a person’s debt, these firms would simply negotiate a lower monthly payment. Many consumers were left in a worse position, facing lawsuits, deeper debts and bankruptcy. Plus, they were unable to get fees back from the debt settlement company. Under FTC rules, these firms must deliver on their promise first and then charge for their services.
Government Crack Down on Credit Repair Scams: Companies targeting consumers with false promises of improving credit scores are being forcibly closed under the FTC’s “Operation Clean Sweep.” Partnering with state governments, the agency cracked down on operations that improperly assert they can provide assistance with removing negative items from credit reports. The FTC’s position is that these companies make false promises founded on a false premise.
Specifically, the FTC found that the illegal firms made deceptive claims that they could remove damaging credit information – even if they prove to be accurate, timely debts. The truth is that properly reported debts can remain on a consumer’s credit report for up to seven years, and there’s no legal way to remove these items.
Feds Issue Advisory for Elderly Debtors: On fixed or limited incomes, more elderly Americans are facing high debts; still others are being taken advantage of by debt collectors harassing them about medical bills, trying to collect on the debts of deceased family members and threatening to collect federal benefits. Older adults with memory problems and mental impairment are particularly vulnerable to attacks from debt collection companies.
As a result, the FTC has issued an advisory to guide the elderly in handling debt collectors. The information includes a statement that it’s illegal for a debt collector to threaten garnishment of federal benefits to collect on a debt; they’re also prohibited from placing a hold on an account where the benefits are directly deposited. The advisory also recommends that consumers get more information on debts before paying, and dispute those that are inaccurate.
Credit Card Debt Relief San Diego
As you can see, these developments have an impact on how companies will work with you to settle your credit card debt in San Diego. Still, the industry is constantly changing and a strategy that may help you reduce your debt today may not be sufficient for tomorrow. Therefore, it’s wise to consult with a debt expert to determine the best approach to settling your credit card debt.
Call Gamez Law Firm for a FREE consultation to discuss your credit card debt options. Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or visit gamezlawfirm.com