subject: Credit Card Debt Relief Act 2010 - Making Debt Settlement Programs A Better Option [print this page] Credit Card Debt Relief Act 2010 - Making Debt Settlement Programs A Better Option
The credit card debt relief act of 210 helped the consumers a lot. This act ensured that the consumer rights are protected and that the consumers do not fall victim of the crooked settlement firms which exist in the industry of settlement. With the massive growth in the demand for settlement programs, many firms grew up in the industry. Some of them were genuine and they wanted to help the consumers out of their unsecured loans and practice ethical business. The rest were fraud. It is because of these fraud companies that the settlement industry lost its reputation.
The fraud settlement firms copied the genuine ones and came up with false promises. The extraordinary promises that they made helped them to attract consumers. When the consumers approached, these firms said that they will help the debtors with their state of the art settlement programs and help them to get out of their debts. These firms collected the service from the consumers in advance. The companies said that the service fee is non refundable and that they will need the money now to cover the expenses which are involved during the negotiation process.
Once the consumers paid, these firms never made an attempt to get in touch with the creditors and negotiate but instead, they informed the consumer after some months that the negotiation attempts were simply burned down by the creditors and there is nothing more they can do to help. The consumers lost their money!
The FTC then made it mandatory that the settlement firms will have to settle the debts of the consumers first and then they can ask for money. If negotiation fails, the firms will not get the money. The consumers were bestowed with the right to report to the FTC in case of any firm asking for up front fee. This way, the fraud companies were forced to leave the market and this is how settlement programs have become better.
Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt. It is not the only option however.
