subject: Debt Settlement - How Obama's Government Just Made Debt Settlement A Better Option [print this page] Debt Settlement - How Obama's Government Just Made Debt Settlement A Better Option
Federal Trade Commission (FTC) is a self-governing organization of the American government. The main rationale of FTC is assistance of consumer protection and the removal and avoidance of what regulators recognize to be damagingly anti-competitive business practices, such as coercive monopoly.
Since its foundation FTC has formulated and implemented many laws to protect the consumer but the recent new law for debt settlement has created a particular hype. When Obama was elected the president of America, country's economy was facing a severe collapse. Obama's government and FTC formulated a new law in July, 2010 which states that no settlement company can charge the consumer upfront fee for the settlement.
In the past many bogus companies were pillaging the naive people, already under a debt of over 10,000 dollars. These companies captivated the consumers by making false promises. They charged upfront fee and told the consumer that they would negotiate with the creditor and settle the debt. But in fact they never contacted the creditor and after sometime told the consumer that the debtor had refused to settle the debt.
Due to these swindles people started bearing in mind Debt Settlement to be unsafe and treacherous. These people had no other option but to file bankruptcy which had immense weird effects on the economy of the country.
After this law is put to practice, people's faith in the debt settlement program has been restored. More and more people are opting for it as it is the most lenient, viable and ethical option available to settle your debts.
The debtors who have an outstanding amount of over 10,000 dollars and have a valid reason for not being able to pay their debt back can apply for this program. The only thing they have to do is to take into service a legitimate settlement company. The company will organize a repayment plan after assessing the monetary situation and total liabilities of the consumer. If the company has a skilled and professional staff, the reduction can be from 50 to 70%.
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:
