Debt Negotiation and Law

Legal compliance is an essential element of successful debt negotiation. Laws and regulations are primarily based upon the common law of contracts and comprehensive federal and state acts relating to consumer finance.

Virtually all major corporations are well versed in applicable laws and consider any proposal outside the boundaries of law as highly suspect. Conversely, all debt negotiation proposals that are within legal requirements and reasonable under the circumstances bolster credibility.

Sources of Laws

Consumer finance laws are of two basic types: those designed to regulate lenders and those designed to protect consumers. Many federal agencies are authorized to enforce laws that apply to lenders (i.e. the Federal Comptroller of the Currency, and their examiners, examine national banks for compliance with all federal regulations). Additionally, the Federal Trade Commission is charged with responsibility for the enforcement of many consumer protection laws and accepts complaints filed by citizens. State governments also enact many overlapping or complementary regulations that are enforced by state agencies.

The best approach for legal compliance avoids even the appearance of impropriety, and instead, concentrates efforts on upon aggressive negotiation seeking mutual agreement of all parties involved.