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| West Virginia |
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Many West Virginia consumers with credit card debt have surely searched online for debt consolidation solutions and consumer credit counseling help. Although the ads and websites may be prevalent, the average consumer’s financial understanding of debt management is minimal. Not only are many consumers unaware of what it actually entails, but many more are in the dark about how to differentiate good companies from bad ones. The purpose of this page of PayingPaul.Com is help West Virginia consumers better understand these programs so they can make the best possible financial decision. There are two types of debt relief for those struggling with personal debt. The first is credit counseling. These programs are usually offered by not for profit debt agencies, who work with creditors to reorganize your debts on more favorable payment terms. This includes lowering your monthly payment, interest and late fees. The typical debt counseling service lasts between four and five years. Another increasingly popular credit consolidation service is debt settlement. Also known as debt negotiation, these programs can be a risky and expensive way to get out of debt. In these programs, a consumer stops paying their creditors and starts saving money each month into a separate savings account. Once sufficient funds have accumulated and a debt is more than 5 to 6 months past due, the company will step in to hopefully negotiate a discounted, lump sum settlement of the account. In many cases, the savings from these settlements can be substantial. However, due to the nature of the approach, it is likely that your credit will suffer as a result, and you will have to accept the possibility of collection calls, as well as lawsuits. West Virginia Debt Management Laws West Virginia has a number of regulations in place that are meant to protect consumers from unaffordable debt management services. The law, which refers to debt consolidation by the term “debt pooling” strictly prohibits operating in the state unless one abides by certain fee limits. Definition West Virginia defines “debt pooling” as “the rendering in any manner of advice or services of any and every kind in the establishment or operation of a plan pursuant to which a debtor would deposit or does deposit funds for the purpose of distributing such funds among his creditors.” Fee Requirements Under law, a debt management company cannot charge fees in excess of 2% of the money deposited by the debtor in the program. Non profits are allowed to charge 5% of the money deposited by debtor to make up for education costs incurred while educating the client on matters of personal money management. Exemptions It should be noted that attorneys licensed in the state of West Virginia are exempt from regulation under these laws. If you want more information about consumer credit counseling and debt consolidation, feel free to follow this link: West Virginia Debt Pooling Other Resources Filing Bankruptcy in West Virginia Bankruptcy Laws in West Virginia Debt Collection in West Virginia |