subject: Credit debt relief laws - how new laws hold debt relief programs accountable [print this page] Credit debt relief laws - how new laws hold debt relief programs accountable
Debt relief programs are very vital and effective to solve intense problems of debtors but apart from their effectiveness and enormous benefits, debtors have to face extreme difficulties in their full employment and utilization.
Indeed, majority of debtors remain deprived due to weak regulatory frameworks and other legal blanks which provided ample opportunity to the debt relief companies to exploit their clients and constantly multiplied their profits due to which the borrowers became unable to repay their mounted dues.
Now the scenario is changing very rapidly. The federal government is paying enormous attention over making strict regulatory framework for debt relief companies and is filling the legal blanks that were providing opportunities especially to debt settlement companies to exploit and deceive their clients.
Now these companies are being brought under the strict regulations and high vigilance so that they can bring transparency in their practices and can work to help debtors in such miserable situation.
Now debt settlement companies are accountable not only to their clients i.e. debtors but also to the regulatory authorities. This dual accountability is compelling them to keep themselves on the right track and contribute effectively and efficiently in solving the problems of debtors.
Under the new laws, no debtor is required to pay a single penny to the debt Settlement Company if it fails in responding to their needs positively. The law allows debtors to distance themselves from their hired debt negotiation companies if they are not meeting with their expectations and are not producing satisfactory results.
New laws are providing a protective shield to borrowers by enabling them to get free from the burden of debts. This is possible through efficient performance of their hired debt settlement companies.
If debt settlement companies perform optimally then the chances of your maximum debt reduction are obvious. Thus the federal government is designing and implementing new laws so that debtors' interest can be safeguarded and they can get rid of their liabilities.
Debt settlement is only intended for individuals and small businesses that are experiencing a financial hardship and that have at least $10,000 in unsecured debts. Before enterng into a settlement program however it would be wise to speak with a debt relief specialist that can go over all you options for free.
