Federal Debt Settlement Relief Laws - Why Debt Settlement Is Now a Better Option
New laws introduced by the FTC have made debt settlement deals a better option for every one around.
There is no doubt that settlement deals get people out of their huge debts due to which they earn their good credit scores again.
At the same time people are also afraid of being looted and cheated by relief companies.
It is due to the fact that there are some fraudulent companies who have entered this industry.
These companies make false promises and collect high upfront charges from them.
Afterwards, they call their customers and tell them that negotiation between them and the lenders were not successful.
But in fact these companies had never contacted the creditors.
As a result, some of the people get sued due to non payment of the charges and some of the people are reported to file for bankruptcy.
This is the reason why people are apprehended about the settlement deals.
In order to secure the rights of the consumer and to ensure that they will not be cheated by any of these companies, the FTC introduced new laws in this industry of the settlement deals.
According to these new laws, no company can charge upfront fee in advance.
With the implementation of this law, now all the fraudulent companies have been flushed out of the industry.
It is because they were in a habit of getting money for doing nothing at all.
But now they know that they will not get anything until and unless they will be settling the debts with the creditors for their clients.
Only true and legitimate companies can withstand this law and hence they are now working successfully in the industry in getting people out of their depressed life under the burden of huge credit card debts.
Moreover, the criteria for getting registered on the websites of better business bureau and chamber of commerce have also become stricter.
Now one must trust all the companies as fraudulent companies have been pushed out of the settlement industry with the help of these new laws by FTC.
It is only due to these laws that now people can place their confidence in the debt settlement deals.
There is no doubt that settlement deals get people out of their huge debts due to which they earn their good credit scores again.
At the same time people are also afraid of being looted and cheated by relief companies.
It is due to the fact that there are some fraudulent companies who have entered this industry.
These companies make false promises and collect high upfront charges from them.
Afterwards, they call their customers and tell them that negotiation between them and the lenders were not successful.
But in fact these companies had never contacted the creditors.
As a result, some of the people get sued due to non payment of the charges and some of the people are reported to file for bankruptcy.
This is the reason why people are apprehended about the settlement deals.
In order to secure the rights of the consumer and to ensure that they will not be cheated by any of these companies, the FTC introduced new laws in this industry of the settlement deals.
According to these new laws, no company can charge upfront fee in advance.
With the implementation of this law, now all the fraudulent companies have been flushed out of the industry.
It is because they were in a habit of getting money for doing nothing at all.
But now they know that they will not get anything until and unless they will be settling the debts with the creditors for their clients.
Only true and legitimate companies can withstand this law and hence they are now working successfully in the industry in getting people out of their depressed life under the burden of huge credit card debts.
Moreover, the criteria for getting registered on the websites of better business bureau and chamber of commerce have also become stricter.
Now one must trust all the companies as fraudulent companies have been pushed out of the settlement industry with the help of these new laws by FTC.
It is only due to these laws that now people can place their confidence in the debt settlement deals.
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