Simply put: Yes. Debt resolution companies are required to be licensed, bonded and registered in every state in which they work and are also fully federally regulated.
This is how you can tell whether a debt resolution company is legitimate or not: If a debt resolution company charges you fees upfront, it is not a legitimate resolution company.
That’s because federal statutes require that services have to be rendered before any fees are collected. Another way to find out if the company you are working with is legit, is if they are a member of the American Fair Credit Council. The AFCC audits all of its members annually to ensure they are following all state and federal rules and laws.
So, is debt resolution legit? Yes. Debt resolution companies are not only federally regulated—they are also subject to state licenses.