Debt Relief over the Phone

If you find yourself in a financial whole, don’t fret. First of all, the rest of the country is right there with you. This is why there has been such an increase in the number of companies who offer debt relief via direct marketing. More and more people have been getting calls about debt relief. Many of whom are very desperate and easily coerced into signing on to their services over the phone. A lot of the time the “service” means having to pay up front with no results guaranteed.

Surprisingly enough, this frequent practice is illegal. Under the Telemarketing Sales Rule, the debt relief companies can’t collect any fees from a prospective customer such as yourself prior to settling or otherwise resolving the debt problems. If the debts are renegotiated one after the other, the company can collect a fee for each debt you’ve renegotiated, but front-loading payments is not acceptable.

The debt relief rep on the other end of the line is required by law to do a few other things too. For instance, they must disclose the detailed aspects of their company’s services. This includes things such as: how long it will take for them to get results, the total cost of the services, the possible negative consequences coming from using debt relief services, and key information about dedicated accounts. Misrepresentation or withholding of any information is now illegal.

The best practice to enact is not paying anything up front.