|
|
Article: Debt Settlement Services Grow Amid Downturn.(Risk Management)
- Article from:
- Collections & Credit Risk
- Article date:
- April 1, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Byline: Kate Fitzgerald
The economic crisis is fueling growth among debt-settlement firms as more troubled borrowers seek help in reaching repayment agreements with creditors.
Consumers failing to qualify for the type of creditor concessions provided by routine credit counseling often contact debt-settlement firms, which negotiate with creditors to reduce debt by cutting interest rates and fees and sometimes by reducing part of the principal owed. The borrower agrees to repay all or part of the original debt in a lump sum or through a series of payments to the debt-settlement company, which retains a portion for its fee. Debt-settlement fees can range ...