November 29, 2010 (Newswire.com) - The Credit Card Debt Relief Act 2010 was recently passed by the Federal Trade Commission. This legislation targets for profit debt settlement companies and bans them from collecting upfront fees. Now consumers that enter into a debt relief program will have much more protection and won't have to pay a dime until their company is able to eliminate at least 35% of their overall balance.
Now consumers have a legitimate option in debt settlement programs . The shady debt relief services that have given the industry a bad name for the last 5 years have all been put out of business. They just simply cannot survive without collecting upfront fees. The legitimate services however that have a proven track record of successful settlement deals will have no problem collecting their fees on the back end after they reach a successful settlement deal.
The Credit Card Debt Relief Act 2010 makes it much easier and less risky for consumers to settle their credit card debt for less than they owe. The typical debt settlement deal is negotiated for 40-60% of the balance and the minimum standard for the majority of companies to collect a fee is 35%. Therefore if you have credit card bills of $20,000 and the debt relief service is not able to eliminate at least $7,000 you do not have to pay them a fee.
Only consumers experiencing a legitimate financial hardship with over $10,000 in unsecured debt will qualify for most debt settlement programs. If you do qualify however it has become a much better option with the passage of the new federal laws. Remember, if they don't perform, you don't pay.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a Free Debt Relief Network which will locate the best performing companies in your area for free.
Check out the following link to get free debt help from certified debt relief specialist in your area. They will be able to go over all your options and offer you a non-biased opinion on what makes the most financial sense for your situation.