These new federal credit card debt relief laws are expected to put all the shady debt relief companies out of business. Only the legitimate debt settlement companies that have actually been settling consumer’s debts will survive.
Online PR News – 29-September-2010 – – A new law that was passed by the Federal Trade Commission is a big victory for consumers with too much credit card debt. This federal credit card debt relief law effectively bans debt relief companies from collecting upfront fees from consumers. Now consumers who enter a debt relief program won’t have to pay a dime until their debts are actually settled. While many debt settlement companies can legally eliminate credit card debt up to 70%, they must actually reach a successful settlement now in order to get paid.
These new federal credit card debt relief laws are expected to put all the shady debt relief companies out of business. Only the legitimate debt settlement companies that have actually been settling consumer’s debts will survive. They will have enough confidence to collect their fee on the back end when the debts are actually settled.
Under the new laws the operation of credit card debt settlement companies is much more strictly regulated. Charging up-front fees is prohibited and credit card debt relief companies must actually accomplish a reduction in credit card debt before a customer can be charged. Debt settlement firms must keep clients informed during the process so they know what has been done and how the creditor is responding to negotiation. Before the process can begin the customer must be informed of the effect that the credit card debt reduction will have on credit ratings as well. These simple but direct changes are eliminating companies that are fraudulent or incompetent leaving only legitimate and reliable debt relief firms.
With these new laws, consumers with over $10,000 in unsecured debt who are facing financial hardship now have very real and legitimate option for achieving debt relief. Credit card companies and other creditors of unsecured debt are worried about the rising delinquency rates and are having no choice but to agree to debt settlement deals.
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: