Debt settlement consumer protection act - why debt settlement is now easier

Dec. 7, 2010 - PRLog -- It is well said that where there is good, there is bad. When we talk about debt settlement companies, we can easily say that all the companies are not legitimate and genuine. There are some fake and illegal firms that are operating in the market as well. Many companies are operating fake activities in the market. The purpose of these firms is to work for their own benefit and generate as much profit as they can from the pockets of innocent consumers. Due to this condition, people have started to lose their trust and faith over this method. This situation has given way to the option of bankruptcy. Insolvency is the option that is never considered profitable from both the lender and the borrower's aspect. In fact the growing ratio of bankruptcy is making the financial condition of the economy weaker. In order to decline the raising ratio of bankruptcy, the federal trade commission has established debt settlement consumer protection act.

This act is basically formulated for the protection of consumers. In this act, the federal trade commission has made some changes in the preexisting laws of settlement. The new rules and regulations clearly say that Negotiation Company is not legally accountable for charging the upfront fees from its consumers. Negotiation Company can only ask for the service fees only after the successful delivery of the services. New laws have separated the bad companies from the good ones. Due to these changes, all the fake and fraudulent companies have washed out from the markets. Now only genuine and legal firms are operating their business in the market. People are also finding themselves secure due to these amendments as now they have the surety of getting hundred percent reductions in their owing amount. Now people don't have the fear of getting trap into the net of fake and unreliable firms.

With each passing day, the demand for settlement deal is increasing while decline has been seen in bankruptcy. This thing was the main purpose of these new rules and regulations. Debt settlement is the only legal option that is workable from both the lender and the borrower's aspect and that is why the financial lenders are heartening people for the settlement deal.

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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