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Debt Settlement Act 2010 - How New Laws Make Settling Credit Card Debt Less Risky
Debt Settlement Act 2010 - How New Laws Make Settling Credit Card Debt Less Risky
Consumers seeking debt relief that do not want to resort to bankruptcy are now breathing a sigh of relief.
Columbus,
OH,
United States
(pr4links.com)
23/09/2010
"Consumers seeking debt relief that do not want to resort to bankruptcy are now breathing a sigh of relief."
September 22, 2010 - Consumers seeking debt relief that do not want to resort to bankruptcy are now breathing a sigh of relief. The Federal Trade Commission studied the debt settlement industry and released a 229 page report on the activities of these companies. Based on these findings the FTC has taken bold steps to protect consumers from any possible fraud. As the new laws go into effect, criminal and unethical operations are quickly being eliminated. What is left is a great deal of legitimate opportunities for those seeking debt relief. Gone are the days of rip offs and no results.
The most important change is that companies offering to lower unsecured debt of any form must show a result in order to be able to charge the customer. Previously, debt settlement companies, debt counselors and debt consolidators could make bold claims, charge the client and then later inform the debtor nothing was able to be done. That all changes now with simple results based regulation. If the debt settlement company cannot successfully settle the debts, the consumer now pays nothing.
In days past, there was a certain amount of mystery and guesswork involved for debtors seeking escape from debt. There was no way to tell the overall effects the customer would experience until after the sometimes lengthy process of debt settlement had been completed. New FTC regulation requires members of the debt relief industry to inform customers prior to beginning work on the final effects their actions will have. This allows debtors to know what will happen to their credit rating before the debt settlement process is started.
Debt settlement had previously been referred to as a 'dark industry'. New laws are bringing this vital service into the light of honesty and integrity. Debts can be lowered by as much as 70% with 40-60% being the normal range of reduction. Also, the seriously damaging effects of filing bankruptcy, losing an automobile and not being able to get major loans for up to 10 years, are avoided.
The easiest way to locate legitimate debt settlement companies is to use a free debt relief network. These 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.
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: