Credit Card Debt Settlement Act 2010 - How New Laws Make Debt Relief Easier To Get

Online, September 14, 2010 (Newswire.com) - Debt settlement developed a temporary bad reputation due to many illegitimate and unethical operations. For awhile it was possible for shady companies to make grand promises, charge up front fees and then fail to deliver any service at all and still keep the money. Worse yet, customers thought they were ok while in reality the months went by with no payments to creditors while fraud companies "worked" on debtors problems. Thanks to the Federal Trade Commission those days are over.

First and most important is that the Credit Card Debt Settlement Act 2010 prohibits up front fees. By simply not allowing companies to charge for their services until after they have produced a result the new laws allay consumer fears of a rip off. No debt settlement, no fee paid.

Second, companies must let customers know what type of impact their services will have on credit ratings. Prior to the new laws debt settlement companies could be vague about consequences of using debt reduction. Now debtors will know exactly what they face.

This legislation is expected to push out all of the shady debt settlement companies that have been ripping consumers off for the past 5 years by collecting non-refundable fees and simply not performing. These companies will not be able to survive with this new legislation. The legitimate debt settlement companies that have actually been settling consumer's debt will have enough confidence to collect their fees on the back end.

Debt settlement needed to be a viable option given that millions of Americans are facing tough times in this difficult economic environment. Debt reductions of up to 70% are possible with 40-60% being the average. Customers can expect to be out of debt in 24-36 months. Such help needed to be safely available to prevent major financial upheaval.

The easiest way to locate legitimate debt settlement companies is to use a Free Debt Relief Network . Such networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate.

To locate legitimate debt settlement companies through a free debt relief network check out the following link:

Free Debt Relief Advice