Credit Debt Relief Laws - Repercussions of 2010 Credit and Debt Settlement Act

Credit Debt Relief Laws - Repercussions of 2010 Credit and Debt Settlement Act

The recent set of laws published under credit and debt settlement act in America had revolutionized the American debt settlement industry. As an overall result, the act has helped to weed out the malpractices in this industry and make it a legitimate industry to eliminate unpaid dues. Under this article, we hope to educate the consumers how these recent laws affect the consumers in a positive way. The most influential laws are explained below for your ease.

1. President Obama bailout plan for year 2010

Under this program, the US government has given stimulus money packages to almost all the financial establishments and banks. The intention is to ease out the burden of those establishments and to let them recover at least a part of their money. As a result of this step, the possibility for those establishments to face a credit squeeze is significantly reduced. Further, benefited with stimulus money, they have taken up a friendly approach towards the consumers who struggle to pay off their debts. They are willing to negotiate unlike in the past. So the consumers can solve their problems by negotiating with the creditors. It is a major advantage.

2. Tax breaks

When a consumer selects a debt settlement program, usually they receive a kind of discount depending on the amount of liabilities they owe. This is considered as an income on the side of the consumer. According to the new tax break law, the consumer has been freed from paying taxes for that extra income. It is a great relief provided for the consumers as they can be debt free in a short period of time.

3. F.T.C debt laws

According to the decree approved by the Federal Trade Commission, the debt clearance companies cannot charge upfront fees from their consumers. The permission has been given for them to collect their portion after they have eliminated the liabilities. This step removes fraudulent practices from this industry and at the same time ensures the safety of the consumers.

Finding legitimate debt settlement companies is very important. Unfortunately there are predatory debt settlement companies on the market so consumers need to know how to find legitimate services. To locate the top performing debt settlement companies in your state check out the following link:

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