Debt Relief Programs - How New Laws For Debt Relief Programs Can Help You Get Out Of Debt Faster
Online, August 2, 2010 (Newswire.com) - On July 29th new laws were passed to regulate debt relief programs. Most debt relief programs, particularly debt settlement companies, would promise consumers to cut their credit card debts by as much as 70%. The problem was however that there was no guarantee of the debts actually settling and most upfront fees were non-refundable. The new laws completely ban upfront fees so every consumer who enters a debt relief program now can be assured that they will not have to pay a dime unless their debts are actually settled.
While many debt relief companies have been able to follow through on their promises, many others have not and before these laws were passed there was nothing the consumer could do about it. Fees were collected upfront and there was no guarantee that the debts would be actually settled. The new laws recently passed by the FTC banned upfront fees altogether so debt relief companies cannot collect until they actually deliver. Indeed, these new laws are a big win for debt ridden consumers.
With the rapidly increasing rise of delinquent accounts the debt negotiation process has gained much more prevalence than just a few years ago. There has to be a middle ground between creditors and debtors. Most consumers who enter into a debt settlement program legitimately cannot afford to make their payments. So instead of filing bankruptcy the debt negotiation process lets them pay back at least some of their debt balance. At the same time, creditors are able to collect money that they would have taken a complete loss on had the consumer filed for bankruptcy.
The risk of entering a debt relief program has been seriously mitigated with these new laws being passed. Consumers no longer have to pay large upfront fees without a guarantee that their debts will be settled.
Only the legitimate debt relief companies will be able to survive with these new laws in place. Debt settlement services that have a proven track record of settling debts and have large enough capital will survive and probably benefit with these new regulations. All of the shady debt settlement services however will be pushed out of the market.
These new regulations will clean up the industry and repair its reputation. The debt settlement negotiation process will survive and probably attract more clients as there is far less risk on behalf of the consumer.
It is very critical for consumers to know how to locate legitimate debt settlement companies that have a proven track record in settling consumer debts. The easiest way to find legitimate companies is to visit a Free Debt Relief Network . There, consumers will be able to locate the best companies in the country and also receive a free consultation to determine what the best debt relief option is. These networks are free to use and have helped thousands of consumers avoid being ripped off.
To locate the top performing debt settlement companies in your area for free debt relief advice check out the following link:
