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Debt Consolidation in Utah
(Note: this is for educational purposes only, and although efforts have been made to keep this up to date and correct, there are no guarantees about the accuracy of anything contained below. It should not be construed as legal advice. For legal advice, please consult with an attorney licensed in Utah.)
Historically Utah has been a state with many bankruptcy filings and high credit card debt. For this reason, it has become urgent to have affordable and quality debt consolidation and consumer credit counseling in the state. With debt consolidation problems increasing, Utah legislature moved to adopt the Uniform Debt Management Services Act in 2007. The purpose of this page on PayingPaul.Com is to describe how debt relief works and shed some light on the laws that are meant to protect Utah from debt scams.
There are two types of debt reduction plans: credit counseling and debt settlement. Although both are similar in that they offer to consolidate your credit cards and have the goal of getting you out of debt quickly, they are very different otherwise. Credit counseling involves lowering the interest on your credit cards and is usually offered by non profit debt consolidators. Although they still do charge a fee typically, these services can be beneficial for consumers who need help managing their credit card bills.
Debt settlement, on the other hand, entails negotiating with credit card companies to lower your credit card debt. Due to the fact that you are able to pay off your debt for less with settlement, it is a much faster way to get rid of your credit cards. That being said, there are pros and cons of debt settlement that should be considered before enrollment. For one, your credit score after debt settlement will probably be suffering, whereas your credit after credit counseling will show the accounts as paid in full will be advantageous.
Do you want to speak with a debt consultant? Submit a form and let PayingPaul.Com match you with one today!
Utah Debt Management Laws
As mentioned earlier, Utah was one of the first states to adopt the Uniform Debt Management Services Act to protect consumers from unscrupulous debt consolidators. The law regulates what disclosures must be made to consumers prior to their using a debt management program, what fees can be charged, and much else.
Definition
Utah defines a “debt management service” as “services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions.” It is important to note that both debt settlement and credit counseling fall under the definition of a “debt management service” in Utah.
Fees
Utah law requires that debt management companies abide by the following fee limits:
Credit Counselors
-$50 for a consultation, getting a credit report, and set up
-The lesser of $50 or $10 times the number of creditors in the debt plan as a monthly service fee
Debt Negotiators
-The lesser of $400 or 4% of the enrolled debt at the inception of the debt program
-The lesser of $50 or $10 times the number of creditors in the debt plan
-30% of the savings as a settlement fee, which must credited against any fee payments mentioned above
Exemptions
The law does exempt certain parties from being regulated by the law, including attorneys, financial planners, and certified public accountants assuming they are licensed in the state.
For more information about consumer credit counseling and debt consolidation, feel free to visit this page: http://le.utah.gov/~code/TITLE13/13_42.htm
Other Resources
Filing Bankruptcy in Utah
Bankruptcy Laws in Utah
Debt Collection in Utah
Historically Utah has been a state with many bankruptcy filings and high credit card debt. For this reason, it has become urgent to have affordable and quality debt consolidation and consumer credit counseling in the state. With debt consolidation problems increasing, Utah legislature moved to adopt the Uniform Debt Management Services Act in 2007. The purpose of this page on PayingPaul.Com is to describe how debt relief works and shed some light on the laws that are meant to protect Utah from debt scams.
There are two types of debt reduction plans: credit counseling and debt settlement. Although both are similar in that they offer to consolidate your credit cards and have the goal of getting you out of debt quickly, they are very different otherwise. Credit counseling involves lowering the interest on your credit cards and is usually offered by non profit debt consolidators. Although they still do charge a fee typically, these services can be beneficial for consumers who need help managing their credit card bills.
Debt settlement, on the other hand, entails negotiating with credit card companies to lower your credit card debt. Due to the fact that you are able to pay off your debt for less with settlement, it is a much faster way to get rid of your credit cards. That being said, there are pros and cons of debt settlement that should be considered before enrollment. For one, your credit score after debt settlement will probably be suffering, whereas your credit after credit counseling will show the accounts as paid in full will be advantageous.
Do you want to speak with a debt consultant? Submit a form and let PayingPaul.Com match you with one today!
Utah Debt Management Laws
As mentioned earlier, Utah was one of the first states to adopt the Uniform Debt Management Services Act to protect consumers from unscrupulous debt consolidators. The law regulates what disclosures must be made to consumers prior to their using a debt management program, what fees can be charged, and much else.
Definition
Utah defines a “debt management service” as “services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions.” It is important to note that both debt settlement and credit counseling fall under the definition of a “debt management service” in Utah.
Fees
Utah law requires that debt management companies abide by the following fee limits:
Credit Counselors
-$50 for a consultation, getting a credit report, and set up
-The lesser of $50 or $10 times the number of creditors in the debt plan as a monthly service fee
Debt Negotiators
-The lesser of $400 or 4% of the enrolled debt at the inception of the debt program
-The lesser of $50 or $10 times the number of creditors in the debt plan
-30% of the savings as a settlement fee, which must credited against any fee payments mentioned above
Exemptions
The law does exempt certain parties from being regulated by the law, including attorneys, financial planners, and certified public accountants assuming they are licensed in the state.
For more information about consumer credit counseling and debt consolidation, feel free to visit this page: http://le.utah.gov/~code/TITLE13/13_42.htm
Other Resources
Filing Bankruptcy in Utah
Bankruptcy Laws in Utah
Debt Collection in Utah