Debt Settlement is About to Change Big Time

By Andy Faria

The debt settlement industry is currently under fire for it's shady practices. They have thrived with the recent economic downturn on charging huge upfront fees, and enrolling unqualified candidates with reckless abandon. Proposed debt settlement legislation threatens to put an end to upfront fees and actually make these companies earn their fees, before charging them. Many won't survive.

Now, I will stop short of calling every traditional debt settlement model a scam, but something needs to change with their fee structure. A company that charges the majority of their fees upfront is destined for failure, sooner or later. If they rely on the cash of new clients to service the clients that have already paid in full, they will need to sell forever. Eventually this model will fail, and the most recent clients to sign up, will take the hit.

A ban on ridiculous upfront fees will surely separate the good, the bad, and the ugly in this industry. The companies that deserve to go out of business, will inevitably do so. Any legitimate organizations that actually provide the debt settlement service they are selling, will be forced to change over to a performance based fee structure or share in the fate of the others.

This new legislation will be the best thing to ever happen to the debt settlement industry. It will create long overdue regulation on fees debt settlement companies can charge, and regulate when they can charge them. Any legitimate, hard working debt settlement firm that is actually settling their clients debt, should welcome the change and have no issues switching over to the new proposed model.

If you have recently signed up with an upfront fee debt settlement firm you should seriously reconsider your involvement with them as soon as possible, before your next monthly payment is deducted, would be best. Here are some things you will need to seriously consider:

Will this company you signed on with and paid fees to already be able to stay in business, if they are forced to change their fee structure?

Why do they need to charge all of their fees upfront?

Where will you be left if this company does fold up and goes out of business?

These are all questions that they will probably not be able to answer straight. If any of these questions concern or relate to you, you should reconsider your involvement, immediately. There are many bad actors in the debt industry today, and you don't want to be flushed away with them when upcoming legislation turns the pressure up.

The author has been on the front lines of the "economic crisis" since the beginning and continues to fight for consumers nationwide. Northeast Settlement Group Inc 866-794-1869 Toll Free We offer performance based fee debt programs, and we don't charge fees until we earn them. Performance Based Debt Settlement Article Source: http://EzineArticles.com/?expert=Andy_Faria