subject: Debt Settlement Programs - How New FTC Laws Affect Debt Settlement Services [print this page] Debt Settlement Programs - How New FTC Laws Affect Debt Settlement Services
Debt settlement is not a new method for the people. This method was present in the market from quite a long period of time but basically, it came into masses' attraction after the current wave of recession which hit the American economy badly. This method brought fast reductions in the amount of debts and it also provides financial security to lenders but still people are hesitating in adopting this method. The Main reason behind hesitation is that people are afraid of getting trapped in the net of the fake and fraudulent business. Many fake companies are also working in the markets and due to their illegal practices people are losing their confidence over this business. These fake companies bring the person into more financial stress rather than comfort. In order to protect the consumers from these illegal firms, the federal trade commission has passed credit card debt consumer protection act. This act is basically targeting all the settlement companies that are working for their profits. It is imposing ban on them from collecting the upfront fees. The consumers who are opting for the debt settlement programs now don't have to pay anything until and unless their selected company is not able to bring 35 % reduction in their outstanding amount.
Due to FTC's laws, people have now started taking debt settlement as legitimate process because they know that all the shady and fake debt settlement companies have been pulled out from the markets. The legitimate companies don't have any issue in collecting the service fees from their consumers after delivering the services successfully. With the help of these new rules and regulations, the business of debt settlement is getting less risky and thus people are finding it as the reliable way for bringing reductions in the amount of liabilities.
If the person has accumulated liabilities equal to ten thousand dollars then it is advisable that he should consult the settlement companies at the first place. These companies will take him out from the misery pool of debts in no time.
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.
