As we know, debt service is the type of cash given by the customer who takes the loan. They
have to return the payment with interest and principal within a particular period. So many
borrowers cannot return the payment within that time due to some issue, and it becomes
difficult for them to return the payment. So, this reading will focus on the debt relief
services that everyone should know.
1-Credit Repair Organizations Act
The Credit Repair Organizations Act prohibits wrong representations
And it requires certain supporting declarations in the offering "credit repair"
The act gives consumers some rights like cancellation rights, and contracts should be
in writing instead of oral.
Some states have enacted similar statutes called Credit Services Organization Acts.
It requires registration, bonding including advance fee prohibitions that will apply in
2-Debt Adjusting laws:
Debt adjusting means the managing, settling, adjusting, and counseling of the
indebtedness of a debtor.
More than half of the states have established licensing requirements for debt
adjusters that do business.
Refusal of this law will lead to fines, penalties, commands, orders for consumer
restitution, and maybe custody.
3-Fair Debt Collection Practices Act
This act regulates the third-party debt collectors who are involved in taking debt.
This act is applied to companies that collect debts from another person.
There will be the counseling of consumer credit and assists consumers. And find out
the receiving payments from such buyers and distributing amounts to creditors.
4-Internal Revenue Code Section 501(q)
This act was enacted in 2006.
This act provides some requirements for credit counseling agencies for governance,
expenditures, revenues, activities.
These rules ensure that there will be no substantial part of the activities of a credit
counseling agency is in f a non-exempt purpose.
5-Mortage Assistance Relief Services Rule
This rule is for companies that offer mortgage loan adjustment services to
consumers for a fee.
6-State Non-profit Corporation Laws
These laws are stated in under of law
Non-profit organizations are prohibited from distributing their net earnings to
somebody who manages the organization.
Non-profit organizations have chosen to benefit the public rather than private
They are many more debt relief services. You may check them out to find out the best fit for
There are some debt relief companies:
Cura Debt which is for tax debt relief
DMB financial which is for high-interest credit card debt
Freedom Debt Relief is an interactive program
National debt relief
Accredited Debt relief is for debt settlement
New Era Debt solution which is for customer satisfaction.
What does a Debt Relief company do?
Debt relief companies are for-profit corporations that help buyers to settle their debts. They
make some plans in interest rates to reduce them and make it affordable for you to make
You should avoid these services because:
They charge high fees for services
They may take off with your money.
They may drop the service when it comes to performing the services
They can harm your credit
So, this reading was all about debt relief services. I hope you find this reading helpful and