subject: New Debt Settlement Laws - How They Affect Debt Settlement Industry and Consumers [print this page] New Debt Settlement Laws - How They Affect Debt Settlement Industry and Consumers
With the emergence of new US government under the guidance of president Obama, started a favorable era of the debt settlement industry. From his day of appointment, one of his top rated targets was to reduce the amount of credit card defaulters in America and to repair the US economy which was fractured due to the economic slowdown. His strategic reforms regarding the debt settlement industry has proved successful as the number of credit card defaulters or bankrupts have started to decline.
Recently published laws and their influence:
1. President Obama bailout plan
Under 'president Obama debt relief program', the US government injected billions of US dollars to debt settlement companies and financial establishments to prevent them from facing a credit crunch. Since the amount of debtors increased recently, the financial organization could not recover any profit. Due to that, they faced a credit squeeze which ultimately ended up risking the whole US government. Thanks to president Obama stimulus money packages, they were able to revive their vigor and strength. In a roundabout way, it established a friendly environment for the debtors to negotiate with the creditor. It is a total contrast to the situation prevailed in the past where the creditors adopted an aggressive method to deal with the consumer out of stress.
2. New legislation of F.T.C
The Federal Trade Commission, in other terms the legal protector of the American consumers drew up a code of laws recently regarding consumer protection. Under this new law, the debt settlement companies cannot charge any sort of fees unless they have successfully eliminated consumer debts. They are permitted to get their share after offering the service. This new law thus prevents the existence of fraudulent debt relief companies who show them up as the `savior' of debtors. Therefore, the consumers need not to worry over the legitimacy of the companies. To gain further comfort, you can contact F.T.C and demand details.
Finding legitimate debt settlement companies is very important. Unfortunately there are predatory debt settlement companies on the market so consumers need to know how to find legitimate services. To locate the top performing debt settlement companies in your state check out the following link:
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