Obama's Credit Card Debt Relief Laws – How New Laws Benefit Consumers In Credit Card Debt

New Laws were recently passed by the Federal Trade Commission regulating the practices of debt relief companies

. The laws mainly target for profit debt settlement companies and ban them from collecting upfront fees. Before these laws were passed, consumers who entered into a debt settlement program had no guarantee that their debts would settle and all their fees were non-refundable. Now, consumers who opt for debt settlement will not have to pay a dime until their debts are actually settled. This legislation is indeed a victory for both the Obama administration and consumers in credit card debt.

The debt settlement industry has been unregulated for too long and unfortunately many shady debt relief services thrived during this time. Collecting large upfront fees without providing any legitimate service was common place. Well, those days are over. Debt settlement companies won't be able to collect fees until they successfully settle the consumer's debt.

The debt settlement process will survive. The legitimate debt settlement companies that have enough capital to survive will ultimately benefit from this legislation. First of all there's going to be far less competition. The small and shady debt relief services will not be able to survive with the advance fee ban. These were the companies giving the industry a bad rap in the first place so the few debt relief services that do survive will benefit by having a cleaner reputation amongst the American public.

In order to qualify for debt settlement a consumer must be at least $10k in unsecured debt and be able to prove a financial hardship. This is not for everyone. The consumer must be able to prove a legitimate financial hardship and be struggling to make their monthly payments.

If a consumer wants to find legitimate debt relief companies the best place is through a debt relief network. The top debt relief networks make sure the debt settlement companies are certified and have a proven track record in settling consumer debt. They will make sure the debt settlement company is an accredited member of The Association Of Settlement Companies (TASC) and have the legal authority to negotiate debt settlement deals.

There are other personal credit card debt relief options available such as credit counseling, debt consolidation, and bankruptcy. Debt settlement is considered the best alternative to filing bankruptcy and is only intended for consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. Bankruptcy should always be the last option for debt relief. Either way, it would be wise to speak with a debt relief specialist that will go over all your options for free.

To speak with a certified debt relief specialist for a free debt consultation check out the following link:

Obama's Credit Card Debt Relief Laws How New Laws Benefit Consumers In Credit Card Debt

By: Caleb Byron

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