What are the guidelines for debt settlement under law?

The law in Washington regarding debt settlement has specific guidelines and requirements that individuals must follow. Debt settlement is the process of negotiating with creditors to reduce the amount of money that a person owes. The agreement must be accepted by both parties, and must be put into writing. Under Washington law, debt settlement must be performed by a licensed debt settlement company. This company will work with the creditor to negotiate a lower payment or balance. In order to qualify for debt settlement, the person must show that they are unable to pay the full amount of the debt. If the creditor agrees to a debt settlement, the debtor is required to make payments to the debt settlement company. The debt settlement company will then distribute the payments, typically in the form of a lump sum, to the creditor in order to reduce the total amount owed. Additionally, Washington requires that debt settlement companies provide customers with a written contract, as well as information on their fees and any other costs associated with the debt settlement process. The contract must also include any guarantees and refund policies that the debt settlement company may have. Finally, debt settlement companies must be careful not to advertise or practice deceptive advertising. Any representation made in advertising materials must be accurate and truthful. By following these guidelines, debt settlement companies can help their customers settle their debts responsibly and effectively in the state of Washington.

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What are the guidelines for debt settlement under law?

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