In October of 2010 the Federal trade commission stepped in and made the most powerful change in the laws for the overall consumers protection. The law forced Debt settlement and debt relief companies to NOT be able to charge any up-front fees for debt settlement services.

The law which went into effect on October 27th, 2010, prohibited debt settlement companies (for-profit companies) that offer debt settlement/relief services over the telephone from charging up-front fees before they actually settle credit card or other unsecured debts for households and consumers.

This rule by the FTC aids tremendously in stopping debt settlement companies in their tracks from charging enormous up-front fees in exchange for settling debts.

So the very first step in your education is that, by law, any debt settlement company that you consider using, should not and CAN NOT charge you a dime for their services until they have actually settled a debt for you. Think about how powerful that is as leverage for a consumer. Just by passing this law, many of the imposters in the fast-growing debt relief industry were eliminated from the mix.

Recap

Make sure that your debt negotiation company is not charging you any upfront fees. You know the law now. Don't be misled by debt settlement companies that do not follow the law. This is your first part in using due diligence to helping you get out of debt for good!