subject: New Settlement Relief Laws - Why Debt Settlement Is Now A Better Option [print this page] New Settlement Relief Laws - Why Debt Settlement Is Now A Better Option
Debt settlement has now become a better option for the consumers. This has happened because of the settlement relief laws which were imposed by the Federal Trade Commission to protect the consumer rights. The consumers were cheated by the fraud firms which existed in the market. The sudden increase in the demand for settlement helped the growth of fraud firms. With the help of false promises, these firms started attracting the consumers and then when the consumers approached these firms, they were asked to pay the service fee in advance. The logic given to the consumers was that the money will be needed in covering the costs of negotiation.
Being in trouble, consumers easily believed these crooked and fraudulent firms and paid the money. After getting the money, these firms made no negotiation attempts and after a few months they called the consumers to say that the creditors declined negotiation. This way the consumers lost. The FTC came forward to rescue the consumers and then introduced a law which prohibited the settlement firms to ask for advance money. The firms were instructed to first show results by eliminating the debts of the consumers and then they will be allowed to ask for money. If they fail, they will not get their money!
This forced the fraud companies to leave the market and only the legit firms were left behind which are known for helping the consumers in real using negotiation. This is why debt settlement is now a better option for the consumers suffering with unsecured loans.
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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