subject: Debt Settlement Consumer Protection Act - How To Capitalize And Eliminate Unsecured Credit Debt [print this page] Debt Settlement Consumer Protection Act - How To Capitalize And Eliminate Unsecured Credit Debt
This might be debatable that the new Consumer Protection Act might hurt the settlement companies severely because they can only charge the consumer after the debt has been settled, in the mean time they have to work for free. Debt settlement can be a long process and if anything goes wrong in the middle of this process the settlement company can suffer a financial loss. But for the consumer it is the best thing ever!
Federal Trade Commission devised this act to save the debtors from being scammed. Courtesy this act, you can eliminate your credit card debt according to your comfort without fearing the cheat from the settlement company.
Before this law was put to practice many falsified relief organizations weren't fulfilling the promises they made with their consumers. They were simply calling consumers back after a few weeks and saying that the debtors had denied settlement. Actually, they never contacted the creditor; they would just keep the fee they charged you in advance. That's why the FTC is now onslaught for those scamming organizations which try to loot the naive Americans.
After this act being implemented the settlement companies have been banned charging upfront fee. Now when you contact a settlement company, you can expect results. If they are unable to deliver, you don't have to pay their fee.
Due to this regulation the success of the companies is now completely reliant on the consumer's success. Owing to this reason, many fraudulent companies opposed these new laws, saying that the survival of the settlement companies relies on the upfront fee.
Under the Consumer Protection Act the settlement company will not even charge the consumer any penalty or any other fee. You can search online, many debt relief networks working which are allied with the ASC which provide the consumers the free debt relief consultancy.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
