New Debt Settlement Laws - Don't Pay A Dime Until Your Unsecured Loan Is Settled

Feb. 15, 2011 - PRLog -- New debt settlement laws are also known as the FTC legislation. These laws helped the consumers in a number of ways. These new debt settlement laws were implemented because of several reasons. The first reason was to protect the consumer rights from the predating relief programs. The second reason was to regulate the operations of the relief industry and the third reason was to restore the reputation of the relief industry.

The shady predatory relief programs were taking money from the consumers in advance but they were making no attempts to help the consumers in getting a settlement deal. The consumers were losing their money. The FTC tried to overcome this problem with the new debt settlement laws. According to these laws,

  1. The settlement firms are no longer allowed to ask for upfront fee.
  2. The firms are required to bear the cost of negotiation until the debts are actually settled.
  3. The firms will have to ensure that at least 35% of the dues are written off through settlement.

If somehow the settlement firms fail to get a settlement deal, they will not get paid by the consumers. This forced many shady firms to dock and wrap their business out of the industry leaving behind the legitimate companies. It is because of this, the option for settlement is now more secured than ever before. Not only the consumer rights are protected but also the settlement business is regulated and the lost reputation of the industry is revived. The new debt settlement laws give the consumers the right of not paying a penny until their unsecured debts are settled.

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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