The Truth About Non Profit Debt
Given the appropriate amount of time, persuasive reasoning, and resources, any one of us could negotiate
reasonable settlements on our unsecured debts with creditors or collection agencies. Most of us, however, find it
to be less stressful to employ the help of a third party for example, a debt settlement company. Obviously, these
companies have certain rules and regulations they must adhere to.
In America, different states have different laws regarding third party debt adjustment. To find out more about
legislation specific to your state, contact local or state agencies for a brief explanation of the third party debt
Third party debt adjustment programs can go by many names such as, debt relief, debt settlement, debt
management, or debt consolidation. Most states highly regulate these programs and have enacted many laws to try to
protect those in need of debt relief. For example, it is usually not allowed for companies based in one state to
offer services in a different state.
Non-profit organizations operate exclusively off of donations, and do not have expensive fees; sometimes it is
even free to enlist their help. In other words, non-profit debt settlement agencies should do the same work for
free or for almost nothing. Advertisements for free debt relief services should not just be taken at face value. As
with anything, thorough research should be done before a decision is made. Please remember that few things in life
are free, particularly when dealing with debt settlement services.
Laws in many states require debt relief services to only be provided by lawyers or debt relief companies that
are registered in the same state that they intend to provide services for. In this case, the lawyer would negotiate
a structured settlement while acting as a power of attorney on the client’s behalf but would not make any payments
for the client. In other words, any person who has entered into a debt settlement program should pay on that
structured settlement personally. Please check your state laws regarding third party settlements before pursuing
any of the options.
Make sure that your money is being paid to your creditors instead of being rerouted to any third party. Always
be sure to check out the company’s Better Business Bureau rating and find out what state they are certified in
before hiring them to manage your debt.
If you find yourself the victim of a debt relief scam, make sure that you file formal charges against the
company that wronged you. Otherwise, other people may fall victim to the same company and they may never be brought
to justice for what they have done. In some cases, fraudulent debt settlement companies have had to pay back to
their clients all of the money that they were scammed out of.
Penalties for operating as a debt relief company without the proper permit or registration could be as high as
fifty thousand dollars. Please keep in mind that some companies are just looking to prey on unsuspecting consumers.
Just remember that when you see non-profit or free always go a step further and investigate.