Federal Credit Card Debt Relief - Why Credit Card Companies Are Scared And How You Can Benefit

The federal government has implemented new credit card rules and regulations to protect consumers

. The federal credit card debt relief program does a couple of things. First, there have been new regulations placed on the credit card companies. These regulations are to protect the consumers from tricks that credit card companies play many times with consumers and the debt they owe. Creditors make large amounts of money off of the interest that they receive on the payments. They also make a huge portion of money from fees and charges they place on a consumers debt. There have been regulations that control these fees and charges so that the consumers understand better what they are paying and how much.

The federal card debt relief measures also forced debt settlement companies to do their job of negotiating with the creditors. They no longer are allowed to take a fee up front to help a consumer get out of debt. In the past fraudulent debt settlement companies took the fees and did nothing to help the consumer. The consumer lost more money because they were told they had to pay all the fees up front before the process could begin and then there was no help, so they ended up sinking further into debt. With the new regulations, this can no longer occur. The settlement must be made before the company can collect any fees. They have to follow through on what they promise to deliver before they can charge a fee.

The new regulations mean that consumers have more protection and more ways to get out of debt. For example, credit card companies can no longer increase an interest rate forever. They can increase it temporarily, but once payments are made on time again, they must reduce the interest rate back to the original amount. They also have to show why an interest rate should be increased or a fee charged. They must show a pattern of behavior by the consumer, as well as show how it is hurting their company.

Also, they must now accept settlements from debt counselors and work to help the consumer get out of debt, instead of stay in it. The new federal credit card debt relief rules force the credit card companies to eliminate half the consumers debt so that the consumer will not file bankruptcy.

This all works to the consumers advantage. There is now a clear way to get out of debt, as well as rules that mean the credit card companies can no longer profit from fees and charges. Consumers have more control over being able to pay their debt back and stay out of debt. They are also able to fight charges on their credit card statements when the creditor has not proven their case.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

Federal Credit Card Debt Relief - Why Credit Card Companies Are Scared And How You Can Benefit

By: smith archer

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