The consumers of Texas have been run through the mill because of this current economic recession. Texas like most states has been devastated with the recent economic events. As a result of such tough times many consumers in Texas turned towards their credit cards just to keep their heads above water.
However there comes a point when those in debt realize they are in deep water and need to get out quickly. This need for Texas debt relief has prompted many consumers to search for the various debt relief programs available for them; a lot of people have been finding that debt settlement would be the best route for them to take.
The problem is that many people have been weary of the debt settlement industry, over the years it has gotten quite a bad reputation. If you are someone who is considering Texas debt settlement but are nervous about what you have heard about the industry and would like to understand more about it and how it has changed then continue reading.
The BIG Problem:
The debt settlement industry became full of startup companies who in many people’s eyes were nothing short of a scam. The primary reason so many greedy businessman broke into the industry is because of the large profit potential with little government regulation. For years debt settlement companies were permitted to charge their settlement fees upfront in advance of settling the client’s debts.
This upfront fee model for a debt settlement program makes the business very lucrative; but it also sets up the company to profit and the consumer to be left at a great risk of losing their money. Many companies in an effort to make as much profit as quickly as possible, were just enrolling as many people as they could; regardless of whether the person was actually a qualified candidate for debt settlement.
These companies were enrolling more people than they had the capacity to properly service. Resulting in many people paying expensive upfront fees and never getting the service they paid for! This leaves the consumer in a much worse situation than they were in before.
If this sounds unfair to you that’s because it is! But continue reading, action has been taken to protect the consumer and save the debt settlement industry from the dreaded “scammer”.
The FTC’s Solution:
After years of receiving complaints from consumers all over the country the FTC decided it was time to take action and come to the defense of the American consumer. On October 27, 2010 regulations were enacted putting a clamp down on the debt settlement industry as a whole.
The first major action taken was the Advance Fee Ban. No longer are companies permitted to charge their fees in advance of actually settling their client’s debt. This is a HUGE benefit to the American consumer. Now clients do not have to worry that they will lose their money to a scam, because they will not be paying until the results have been met.
This also helps out the debt settlement industry as well. There are many companies out there that not only have the client’s best interest at heart, but are great at achieving the results desired. By weeding out all the rotten scam companies it allows the honest ones to flourish. Why would a company that only wants to collect fees and not do the work still stay in business? There is no more easy money to be made for them in the debt settlement industry!
Many of the companies using the new fee model earn their fee based on a percentage of the money saved for their client. This ensures the companies’ debt negotiators are always looking to get the best possible settlement for you. The more money they save you the more money they earn, this results in a WIN-WIN situation.
Your Solution:
If you live in Texas and are in need of help with your credit card debt then you have come to the right place. Prestige Financial Solutions has been successfully running the PAYS (Pay As You Settle) debt settlement program for over 2 years now. PFS foresaw the coming changes long before they were enacted and took action, ensuring they were doing everything possible to best benefit their client: the overburdened consumer. PFS can offer residents of Texas, a Texas debt settlement program with no upfront fees that can help them escape their credit card.
If you would like to find out if you are a good candidate for debt settlement then click the link below and fill out an application to speak with one of our debt analysts.
