subject: Federal Debt Relief Laws - Understanding the New FTC Debt Settlement Laws [print this page] Federal Debt Relief Laws - Understanding the New FTC Debt Settlement Laws
It is a fact that the debt settlement industry has earned a bad reputation in the market because there were many fraudulent companies working previously that used to offer the best relief services to debtors. With this attractive motto, they used to attract many customers. These scam companies cheated the consumers and ran away with their money and made them suffer even more. These companies used to charge high upfront fees from their clients and then after sometime, they reported to the consumers that the process of their settlement did not go well because the creditors did not agree.
After some time, when the government got the information about the false acts of these scam companies, it took these fraudulent companies out of business and declared them defaulters. Then the FTC laid down new debt settlement laws which were proven quite beneficial for the consumers. These laws stated that the settlement firms will not charge any kind of upfront fees or any charges from their client unless and until they settle their debts. Once they solve the issue then the companies would be paid and if they fail to resolve debt issues then there is no need to pay them.
If you want to settle your debts then you should hire the services of a legitimate debt settlement company. Once you have hired the services of a settlement firm then you can get a reduction of 60 to 70 percent in your debts and you can pay the remaining amount in a lump sum or in installments. You can also settle your bad debts if you negotiate with the authorities. It can be done if you hire a professional debt settlement firm. The firm would negotiate with the authorities on your behalf and would enforce the authorities to realize that you are unable to repay your debt amount. If the authorities consider your appeal then you can get full clearance of debts without paying anything.
The FTC's laws have been proved quite beneficial for the consumers. The debt settlement process has become the best alternative to bankruptcy and many of the consumers have got rid of their bad debts by opting for these new laws proposed by the FTC.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.
