New Debt Settlement Laws - A Victory For Consumers With Too Much Credit Card Debt
The new debt settlement legislation has taken the risk off the back of the consumer and placed it upon the debt settlement companies. The days of collecting large upfront fees without actually settling the consumer's debts are over.
Online, August 18, 2010 (Newswire.com) - New debt settlement laws were recently passed by the Federal Trade Commission giving consumers much more protection from predatory debt relief services. The new laws target for-profit debt settlement companies and ban them from collecting upfront fees. Now when consumers enter into a debt settlement program they will not have to pay a dime until their debts are actually settled. This is indeed a victory for consumers with too much credit card debt.
This new legislation has taken the risk off the back of the consumer and placed it upon the debt settlement companies. The days of collecting large upfront fees without actually settling the consumer's debts are over. Now the debt settlement companies must live up to their promises if they want to get paid.
The debt settlement process will survive. The legitimate debt settlement companies that have enough capital to survive will ultimately benefit from this legislation. First of all there's going to be far less competition. The small and shady debt relief services will not be able to survive with the advance fee ban. These were the companies giving the industry a bad rap in the first place so the few debt relief services that do survive will benefit by having a cleaner reputation amongst the American public.
The process of debt settlement does work when does correctly and by the right company. Credit card companies understand that if a consumer were to declare bankruptcy they would probably not receive any of their money back. Knowing this, and the fact that there are a lot of people on the verge of bankruptcy, they are more than willing to make a debt settlement deal. They'd rather have 50% of their money back than none at all.
With the rapidly increasing rise of delinquent accounts the debt settlement process has gained much more prevalence. There has to be a middle ground here. 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.
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 debt 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:
