Credit Card Debt Relief Act 2010 – How New FTC Regulations Make Debt Settlement More Legitimate
The Federal Trade Commission recently passed laws regulating the credit card debt relief industry mainly targeting for-profit debt settlement companies. Many of these companies promised they could help consumers “cut credit card debt in half”. The problem was however that there was no guarantee for consumers, many of which had to pay large upfront fees to the debt settlement companies. Well the Credit Card Debt Relief Act 2010 changed all of this. Now debt settlement companies must live up to their promises or they don’t get paid.
Making the debt settlement industry a performance based service was a long time coming. The growth of the debt settlement industry grew drastically after the new bankruptcy laws were passed in 2005 which made bankruptcy more difficult to qualify for. Hundreds of debt settlement companies went into business and many of them were illegitimate. They simply collected fees without providing a real service. Well, that’s not possible anymore thanks to the Credit Card Debt Relief Act 2010.
This new legislation is expected to put all the shady debt relief services out of business. Only those services that have legitimately been settling consumers’ debts will be able to survive. The debt settlement process does work when done in the correct way and with the right company. The legitimate debt settlement companies will have enough confidence to collect their fees on the back end when they successfully settle the debts. Still, it would be wise to use a site like FreeDebtReductionHelp.com that can provide a free analysis to determine what debt relief option makes the most financial sense.
Credit card companies and other creditors of unsecured are willing to make debt settlement deals. They understand that if the consumer were to declare bankruptcy they would likely receive none of their money back. Considering the growing amount of Americans on the verge of bankruptcy, creditors are having no choice but to make debt settlement deals. 50% of their money back is better than none at all.
There are other personal credit card debt relief options available such as credit counseling, debt consolidation, and bankruptcy. Debt settlement is considered the best alternative to filing bankruptcy and is only intended for consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. Bankruptcy should always be the last option for debt relief. Either way, it would be wise to speak with a debt relief specialist that will go over all your options for free.
To speak with a certified debt relief specialist for a free debt consultation check out the following link:
Or Call: 877-853-6466
- Contact Information
- Michael Smith
- United Debt Associates
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