Federal debt settlement relief laws – making debt settlement a legitimate option

Federal debt settlement relief laws – making debt settlement a legitimate option

Recession all around the world has left people in great despair. People no more have any kind of financial assets to pay back their credit card debts. They were used to live a lucrative life as they were having smart jobs with handsome salaries. They were not worried at all about the payments of their credit cards and were in a habit of using their cards very frequently. As soon as the recession hit the economy, people started to get laid off from their jobs very often. Moreover, their side businesses on which they were depending a lot also had to face huge losses due to which people were pushed in deep holes of credit card debts. Seeking no way out, people started to file for bankruptcy. It proved to be another serious blow for the economy and to avoid this situation; the government came up with many debt relief options for the common men to live a debt free life again. It helped people a lot in all respects.

But the dilemma of the people suffering did not end here. Many fraudulent companies entered the settlement industry and cheated the innocent people. Seeing this situation, people again went back to the bankruptcy. When the government saw this situation, it introduced new laws to keep people’s confidence in the settlement deals. According to these new laws by FTC, debt relief companies will not ask for any kind of payment before the settlement deal is finalized. If any company does so then it will have to bear huge penalties.

Moreover, we already knew that all settlement companies are supposed to get them registered over the websites of the better business bureau and the chamber of commerce etc. when the fraudulent companies created mess, these registration rules became stricter.

Now only true companies can get them registered over there. So now the new rules introduced by the FTC have made relief options more secure than before. Now the new laws state that no fee can be charged till the completion of the deal. Thus the settlement companies will have to wind up the process of the settlement in less time to get their payment as soon as possible.

If you have over $ 10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.

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