New Debt Settlement Laws 2010 - How New Laws Make Debt Settlement More Legitimate
Getting out of debt via a debt settlement process has just gotten easier and more legitimate. New laws passed by the FTC effectively ban debt settlement companies from collecting upfront fees. This makes the debt settlement industry performance based and companies are not allowed to collect fees until they negotiate a successful settlement deal. What used to be a very risky decision for consumer debt relief is now much more legitimate and financially sound option.
Debt relief programs were notorious for collecting upfront fees and not following through on their promises. Before the new debt settlement laws, there was no protection in place for the consumer. This has all changed now. Debt settlement companies must live up to their promises and actually settle the debts in order to get paid. Consumers donít have to pay a dime unless the debt relief company settles the debt balance.
The average debt settlement in 2009 was negotiated for 50% of the balance. There was approximately $1 billion in unsecured debt that was settled in 2009 alone. With the new debt settlement laws in place, many experts believe debt settlement cases could double over the next year. This is mainly because more consumers will be entering into a debt settlement program due to the fact that itís a far less risky decision now. Also, the debt settlement negotiators will be much more effective than in the past knowing that if they canít negotiate a successful settlement they wonít be getting paid.
Itís important to know how to find the legitimate debt settlement programs and avoid those that may cause more harm than good. Luckily with this new legislation most of the shady companies will be pushed out of the market. Still it is important to ensure a debt relief company is certified and legally backed. The easiest way to do this is to use a free debt relief network. FreeDebtReductionHelp.com is one of the largest and most respected debt relief networks on the marketplace. They investigate and only recommend the very best companies that are established and have proven results.
To get help from a free debt relief network, visit the following link. They will go over all of an individualís debt relief options and help them determine which one makes the most financial sense for them.
- Contact Information
- Michael Smith
- United Debt Associates
- Contact via E-mail
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