Debt Settlement News - How The New Attorney Model Could Change The Debt Settlement Industry
Online, May 2, 2010 (Newswire.com) - Recent debates into the debt settlement industry led to several different proposals being presented one of which is the attorney based model. Twenty nine states already have implemented the attorney based debt settlement regulations and many believe the rest of the states are soon to follow. The attorney based debt settlement regulation requires all debt settlement companies to be represented by lawyers. This would give more legitimacy to the industry and provide consumers better protection against unethical practices and potential lawsuits. It would also push many of the new and inexperienced debt settlement companies out of the market.
The attorney based debt settlement model would give consumers more protection under the law for debt negotiation as well as protection from unlawful collection practices. Debt settlement companies that are not backed by attorneys will claim that they can accomplish significant savings and stop collection calls. The reality is that the debt settlement companies which are not backed by attorneys do not take the legal actions necessary to successfully negotiate a debt settlement deal.
Debt settlement companies that are backed by attorneys will know what actions to fully protect the consumer from creditor harassment and potential lawsuits. A legitimate debt settlement company that is fully backed by attorneys will know what preventative measures to take to protect consumers. This includes being enrolled in UCAN. United Consumer Advocacy Network, LLC (UCAN) is a consumer advocacy company that vigorously defends the rights of consumers against unlawful, unfair, and deceptive practices by financial institutions, particularly creditors and their bill collectors. A legitimate debt settlement company will automatically enroll consumers in UCAN and take other legal actions to help the debt settlement process.
All legitimate debt settlement companies are fully backed by lawyers but unfortunately the debt settlement industry has its fair share of unethical companies that do not have legal backing. These companies will argue that their debt settlement programs are less expensive than the attorney based models however most of the time they fail to disclose the true risks like potential lawsuits and credit damage.
Debt settlement companies grew significantly over the past few years as a result of stricter bankruptcy laws. Consumers that want to avoid bankruptcy and eliminate unsecured debt see debt settlement as a viable option. Debt settlement companies that have implemented the attorney based model provide consumers much more protection under the law than those that have not. Therefore it is highly recommended that consumers considering debt settlement go through a company that is fully back by attorneys.
To locate legitimate debt settlement companies that will offer consumers the most protection under the law check out the following link:
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