subject: Credit Card Debt Relief Laws - Why Debt Relief Programs Are Now A Good Option [print this page] Credit Card Debt Relief Laws - Why Debt Relief Programs Are Now A Good Option
Did you hear about the credit card debt relief laws? Well, if you haven't, it is time to study a bit about the same and learn what they can do for you to help you out of your debts. The relief acts were brought into practice because the relief industry went corrupt. The economic meltdown caused a serious problem for the consumers and the event of bankruptcy filing increased in leaps and bounds causing financial harm for the creditors. The new Federal laws on bankruptcy introduced restrictions on bankruptcy filing and thereby increasing the demand for debt settlement.
With this increase in debt settlement demand, a new platform for the fraud companies were developed and some shady companies came into existence. They preyed on the suffering consumers and made money. By the dint of false promises, these shady companies succeeded in getting consumers who were made to pay in advance to cover the costs involved in settlement or other relief programs. When these companies received the money, they turned their back on the consumers and simply walked away with the money stating that the creditors did not agree and that the money provided by the consumers are non-refundable. This way the troubled consumers lost even more money without getting in real help.
The consequence was that the consumers lost faith on the whole system and the image of the legit relief firms also took a hit. The government came with new laws which now require the settlement or other relief companies to first help the consumers to get out of debt and then ask for their fee. Only when the consumers get out of debt, the consumers will pay these relief programs. However, until then, the relief programs will have to deal with any expenses related to the relief program out of their own pocket.
This requires a good amount of financial strength and the relief programs must know their job well because if they fail, the consumers now have the right to decline any payment request on the ground that the relief program failed to help. The consumers even have the right to report to the Federal Trade Commission if any of the relief programs ask for advance payments. So, for the relief firms, life is no longer easy. If they want to earn money, they need to do it the hard way and actually render relief services. If they don't, they don't earn!
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
