FTC Issues Final Rule to Protect Consumers in Credit Card Debt
According to a piece of recent news (October 5, 2010), the Federal Trade Commission has passed new laws concerning debt settlement that will supposedly make getting out of debt in a debt settlement process much easier for the consumers. This is good news for all those out there who have been under a lot of debt burden and find their debt settlement companies harassing them for repayment or exorbitant debt charges.
Effectively, these new debt settlement laws ban the debt settlement companies from taking upfront fees from their consumers, and these laws are applicable for small scale business as well. In other words, consumers and small scale business do not have to pay any amount of money to their debt settlement companies until their debt has completely cleared!
No more debt settlement company scams
These laws come on a background of debt settlement processes that were not one hundred percent legitimate, required the clients to pay very high fees with little or absolutely no guarantee that their debts would actually settle. In reality, the debt companies would make hollow promises, and the consumers were left to bear the brunt of the bill. Considering the other side of the story, some debt settlement programs do actually work the way they are supposed to.
One of the few debt settlement laws is the concept of advance fee ban, which is basically a way to reduce the risk for the consumer in the debt settlement process. Although the debt settlement process will still take place, it will do so in a more legitimate manner and with less initial monetary pressure on consumers who were previously paying a large amount of money in advance fees. Now the debt settlement companies will only get paid when they make a proper deal with the creditors and settle the entire debt.
If a consumer is going through particular financial hardship, then they can avoid filing for bankruptcy by engaging in a legitimate debt settlement process that works out well for them. However, in order to be eligible for a debt settlement process, the consumer must be able to prove their financial hardship in some legal way and be at least $10,000 in unsecured debt.
In fact, to make the process easier for consumers, Free Debt Relief Networks are present across the country that not only provides access to TASC certified debt settlement companies but also provides consultation to explore the options available to different kinds of consumers in different scenarios. So, instead of facing your financial hardship alone, make use of these new debt settlement laws to make your financial future more stable and secure.