Federal Credit Card Debt Relief - How New FTC Laws Help Consumers Settle Bad Credit Debt
Online, December 16, 2010 (Newswire.com) - New federal credit card debt relief laws were recently passed by the Federal Trade Commission of the United States. These laws target for profit debt settlement companies and make it much easier for consumers and small businesses to settle their bad credit debt. What once was a very risky option in debt settlement, is now one of the most affordable debt relief options available.
The new federal credit card debt relief laws ban debt settlement companies from collecting upfront fees. They can only collect a fee when they negotiate a successful debt settlement deal with creditors and eliminate at least 35% of the consumers overall balance. This means that if someone has $40,000 in credit card debt and the debt relief company is not able to eliminate at least $14,000 of that, the customer is not responsible for paying a single penny.
These new federal credit card debt relief laws go a long way in making the debt settlement process legitimate. Nearly all of the shady debt relief companies have been put out of business. The shady companies that made a business off of collecting upfront fees and ripping consumers off will not be able to survive. The legitimate debt relief companies with a proven track record however will have enough confidence to collect their fee on the back end when the debts actually settle. They know the debt settlement process works when done the correct way.
While most of the shady debt relief services have been put out of business with these new laws, there still are probably some bad apples out there looking to take advantage of desperate consumers. It would be wise to visit a debt relief network such as FreeDebtReductionHelp.com . They provide free and unbiased debt help to consumers and only recommend the most respected debt relief services. It is always wise to visit one of these free networks before selecting a debt relief program.
For consumers with over $10,000 in unsecured debt, a debt settlement program can be a good way to eliminate 40-60% of that balance while avoiding many of the consequences of bankruptcy. Considering these new federal credit card debt relief laws, this has become a much less risky option for getting out of credit card debt. However it would still be wise to speak with a debt relief specialist that can go over all the options for free.
Check out the following link for free debt help and to find legitimate debt relief services:
