New Credit Card Debt Settlement Laws - How New Laws Make The Debt Settlement Industry More Legitimate
The most important aspect about this legislation is that the process of credit card debt settlement or debt negotiation has become much more legitimate. The risk has been taken off the consumer and transferred to the debt relief services.
Online, August 4, 2010 (Newswire.com) - New laws regulating the credit card debt settlement industry were recently passed by the Federal Trade Commission. These new laws basically ban debt relief services from collecting upfront fees from consumers. Now consumers who enter into a debt settlement program will not have to pay a dime until their debts are actually settled. This is indeed great news for consumers in debt.
Many debt settlement companies have been notorious for collecting large upfront fees without successfully settling the debt. These shady companies that have given the industry a bad reputation will be put out of business with this new legislation. Only the legitimate services will survive.
Credit card debt settlement companies that have legitimately been settling consumer debts will be confident enough to collect their fee on the back end when the debts are actually settled. These new laws will also motivate the debt relief services to work harder on the consumer's behalf seeing as how they won't be getting paid until the debts are actually settled.
The credit card debt settlement process itself will survive. Credit card companies and other creditors of unsecured debt are still willing to make deals. They want to prevent consumers from filing bankruptcy because when this happens the creditors usually receive nothing. They would rather have 50% of their money back than none at all.
The most important aspect about this legislation is that the process of credit card debt settlement or debt negotiation has become much more legitimate. The risk has been taken off the consumer and transferred to the debt relief services. At the end of the day, debt settlement programs will be more effective because now the companies must work and perform for their fees. These new laws will increase the amount of successful settlements and allow consumers a better option for debt relief.
Only consumers that have at least $10k in unsecured debt and are experiencing a legitimate financial hardship will be able to qualify for a credit card debt settlement program . Considering these new laws, the settlement process itself is far less risky for the consumer and should be at least attempted before filing bankruptcy. Bankruptcy should always be the last option.
The easiest way to locate legitimate debt settlement companies is to use a Free Debt Relief Network . These networks will ensure that the 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. There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.
To locate legitimate debt settlement companies through a free debt relief network check out the following link:
Share:
Tags: bankruptcy, credit card debt, credit card debt settlement, debt relief, debt relief companies, debt settlement, unsecured debt
