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Published on Nov 20, 2012
This video is brought to you courtesy of Pennsylvania Debt Relief .org.
Understanding Debt Relief: No Upfront Fees
With few exceptions, debt relief service providers, unless they are attorney based and meeting face to face with consumers, may no longer charge any up-front fees from a customer before debts have been successfully resolved or settled. This is as a result of consumer protections put in place by the federal trade commission effective October of 2010. If a debt relief provider has re-negotiated a customer's debts one after the other, they can collect a fee for each debt that has been successfully renegotiated. Debt relief services can require customers to set money aside in a dedicated account for fees and payments to creditors, but new regulations place restrictions on those accounts to make sure customers are protected. But again, it's important to keep in mind that, unless you are using attorney-based debt relief services, and meeting-face-to face, you cannot be charged any up-front fees before debts have been resolved or settled.