Credit Debt Relief Act 2010 - Why Debt Relief Programs Have To Follow Stricter Guidelines Now

Credit Debt Relief Act 2010 - Why Debt Relief Programs Have To Follow Stricter Guidelines Now

Good news is that the credit card debt relief act 2010 is in place and the consumers can now have some space to breathe. The recession followed by a severe economic meltdown over threw the whole economic balance and an overwhelming number of consumers faced serious trouble because of their unsecured debts. The consumers lost their jobs and the failure to repay the debts on time just added up to the misery. Majority of these suffered consumers opted for bankruptcy but for no good. Yes, they managed to wipe off the debt in full but had other financial troubles waiting for them across the boundary. The greatest disaster that took place was that the creditors incurred enormous losses and they lost their financial equilibrium. The government came up with new bankruptcy laws which made bankruptcy filing a difficult one and the consumers started looking for alternatives.

The method of settlement came to rescue and the stupendous amount of demand for debt settlement, the existing firms faced trouble in handling the pressure. However, they were doing good until some shady firms came in to exploit the consumers and make money by cheating them. These firms came up with fake and attractive promises and attracted the consumers looking for settlement help. According to the existing rules of the settlement industry, these shady companies asked for their fees in advance and then it was found that these companies simply turned their back on the consumers. No help was given and the consumers lost even more money.

This way the consumers lost their faith on the whole settlement industry and even the most legit firms were unable to convince the consumers to come for settlement. The government came up with the relief act which made the settlement process more stringent for the settlement firms. The firms are now required to first help the consumers by settling their debts and only then they are allowed to ask for money and not before that. This new act made the life of shady firms a misery and they were simply forced to leave the market leaving behind only the legit ones. The consumers can now trust these firms and they can easily get out of their with the help of these firms. The firms are now required to carry on the process of settlement at their own expenses and this means that they will have to cover up their costs from their own pockets and once the settlement is over, they can claim back their money. However, if they fail, they will simple lose their own money. So, things are now stringent and the firms are honest!

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.

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