New bill could lead to higher fees by Ohio debt relief companies
Bill may result in debt collection companies being able to charge Ohio residents significantly higher fees for their services.
February 12, 2014 /24-7PressRelease/ -- New bill could lead to higher fees by Ohio debt relief companies
Article provided by Law Office of Gregory M. Wetherall
Visit us at http://www.gw-law.net
Many Ohioans were hit extremely hard in the most recent recession. People struggled to find employment positions that would supply them with the income they needed to make ends meet. If they suffered any health issues, the high costs associated with treatment often led many families to deplete any savings that they may have had, creating an even more difficult financial situation.
Some of these individuals did not want to file for bankruptcy protection, so they considered other options such as working with a debt relief company. These companies aggressively promote their services to debtors, insisting that they will negotiate with creditors on the debtor's behalf. They often require the debtors to stop making any payments on their bills, and instead force the debtors to pay them large fees before any action will be taken.
Ohio has strong rules in place dealing with these companies. Debt relief organizations are limited in the amount of fees that they can charge each debtor, but, a new bill being proposed in the state could eliminate this cap, which could mean higher fees for debtors. Additionally, the new law would require companies to state how much debt they could possibly reduce, but it does not necessarily impose any penalties should the companies fail to meet their projections.
If the bill is passed, it could lead to even more problems for debtors. They may be forced to spend what little money they have working with companies who are not looking out for their best interests. This could leave many people unsure what they should do if they are in this particular situation.
If you are experiencing significant financial difficulties, you need to be informed about all of the potential solutions that could be beneficial to you. Speak to an experienced bankruptcy attorney to begin preparing a plan that best fits your needs. Your attorney will be able to explain each option in detail, which will give you an idea on how you can best approach your specific situation.
This might be the first time you have ever had these types of issues, and are afraid of what is going to happen. Many other people in your position have felt the exact same way, and they let this fear prevent them from taking action. You may not be considering bankruptcy at this time, but it is important that you seek help before you fall too far behind in your bills. Once collections actions begin, you will start to experience a negative impact on your credit.
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