subject: Government Debt Relief Laws - How New FTC Laws Help Consumer Debt Relief [print this page] Government Debt Relief Laws - How New FTC Laws Help Consumer Debt Relief
Government debt relief laws are introduced in order to uplift the life standards of the debtors by helping them eliminate their debt legally. Debt relief was introduced some time before realizing the bad financial status of the community being affected by the recession. The recession is the bad economical situation which has swollen the whole sector of finance all around the world.
The community being indebted and unable to pay off the debts have found debt settlement a miracle which came to aid them in the appropriate time. They have the capability of reducing their debt and pay the rest by going through a proven debt settlement company.
But the settlement companies were not governmental; they were private companies with the government approval. When the number of the companies raised and the debtors were so much keen in going for them, the fraud companies were established pretending to be legitimate.
They had no capability of settling the debt, but took money from the debtors promising settlement and once the money is in their hand they vanished off from the scene. Your debt can not be eliminated with them.
But it was difficult for the debtors to identify them thus many were victims of this menace. FTC took steps to prevent this by imposing new laws which could eradicate the fake companies from the market.
It is by banning the up front fees which were charged from the debtors prior to the settlement process. Now after the imposition of these laws, no settlement has the right to charge you before the debt is settled.
With these laws, the fraud ones have no more chance to mislead the people. The community can easily recognize the legitimate companies and eliminate their debts legally.
There is no magic bullet to get out of debt. However, debt settlement can be a viable option to eliminate unsecured debt while avoiding bankruptcy. To locate legitimate debt settlement companies in your state for free debt relief help then check out the following link:
