Federal Credit Card Debt Relief - How New FTC Laws Can Help You Settle Credit Card Debt
The days of debt relief services taking consumers' fees without actually settling any debts are over. Now they will have to actually settle the debts to get paid.
Online, September 20, 2010 (Newswire.com) - Responding to complaints that there were no debt relief industry standards or consumer protections the FTC released a 229 page report on debt settlement practices. Using the report as a guide the FTC enacted new laws to clean up the debt reduction landscape and help consumers receive quality service in these financially difficult times. Credit card debt can be settled safely without fear of being scammed or resorting to the seriously damaging effects of bankruptcy.
Debtors with $10,000 or more in credit card debt can now find a legitimate lifeline to save them from drowning in debt. Federal credit card debt relief is now the beacon of hope many had originally planned for it to be. Previously debtors had found themselves lost in a sea of debt settlement companies and possessing no way to sort through the illegitimate to reach legitimate companies. But new regulations have changed the way the debt relief industry does business.
The most prominent and affecting change comes from a simple change in billing policy. Before the new laws credit card debtors could be charged fees up front with no idea at all whether the cost of service would be worthwhile or not. Now Credit Card Debt Settlement Companies must gain a result, actually lower the debt and make a settlement, before fees can be charged. This simple but effective move is eliminating all the sham companies that received payment for doing nothing.
Reductions in debt of up to 70% are possible with average reductions in the 40-60% range. But at what cost? Prior to new laws credit card holders looking for relief had no idea how that relief would affect their credit ratings. Members of the credit card debt relief industry are required under new laws to inform customers of how their credit ratings will be affected at the start of the process. This will allow for more intelligent and informed consumer decisions.
Debt negotiation can take awhile and it used to be that clients of debt settlement companies had no idea what was going on. Sometimes, when a debt settlement company was in the process of accomplishing nothing, the customer would assume things were being handled when in reality the credit card company was not receiving payments for months and becoming angry about it. The new laws require regular updates so clients know what is going on.
Check out the following link to get free debt advice from a Debt Relief Specialist in your area. They will go over all your debt relief options and help you determine what option makes the most financial sense for you:
