Debt Negotiation Relief Option - How New Laws Made Debt Settlement Better

Feb. 24, 2011 - PRLog -- The debt negotiation relief option can be used by the consumers to eliminate at least half of the total outstanding and also maintain the credit score to a good standing. This method is the best among all the available methods of handling unsecured loans. This method earned high popularity after the option of bankruptcy was sent to the back foot by the changes made in the bankruptcy filing laws. The high demand for the method actually helped some shady firms to grow in the market which started cheated the consumers. They took money in advance from the consumers and then they turned their backs on the consumers. They never helped the consumers by negotiating with the creditors. They in turn actually informed the consumers that the creditors declined all the attempts made by them to settle the dues.

The consumer lost their money to the shady firms and as a result the whole of the relief industry lost its reputation. The legislation laid down by the Federal Trade Commission on 27th October, 2010 helped the relief industry by regulating the activities of the settlement firms. The companies were instructed to follow the following regulatory restrictions:

   * Fees to be collected only after the consumer debts are settled.
   * Amount of elimination to be earned for the consumers is 35% minimum.
   * Cost of negotiation to be borne by the companies till the debts are settled and the consumers are debt free.
   * Companies need to ensure that the consumers are satisfied completely.

These regulations simply ended the operations of some of the shady relief firms and only the most authentic and experienced relief firms were left in the industry. These legitimate companies knew what to do with the creditors and they successfully helped the consumers by staying withing the regulations laid down by the FTC. This is how the new laws made debt settlement better.

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
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