Who would have thought that recent Consumer Debt Relief Act will revolutionize the whole US debt relief industry within such a short period of time? Unbelievable, but it is the truth.
The thousands of credit card defaulters have started to see 'the settlement companies' as their one and only destination regarding their financial life.
What is the secret behind this popularity? Worth examining! The consumer debt relief act 2010, regulated by the Federal Trade Commission, the consumer protection bureau of US codified a set of strict rules with regard to debt clearance industry.
Due to the existence of fraudulent debt clearance companies on this business, the consumers lack courage or enthusiasm to approach a reduction company.
Instead, they prefer bankruptcy.
This is a completely negative scenario for the US economic condition.
So what is the remedy? The US president Barak Obama made the debt reduction companies function under the US government.
Debt reduction industry is a legitimate option now.
To encourage the debt ridden consumers to approach more debt settlement companies, under the new F.
T.
C.
laws, the government has legally blocked the right to charge upfront fees.
This law has made the survival of fraudulent debt clearance companies ultra hard and dangerous.
If they caught in act, they will be blacklisted by the government and will be charged for fraud.
So there is a considerable suppression in this industry.
A few months back, the settlement companies popped out in every corner of US, but this is impossible under the current circumstances.
So, why do not try a debt reduction company now? You are obliged to pay only at the end of the program.
If the deal is unsatisfactory, you are not obliged even to pay a dime.
So, the debt settlement arena is safe and convenient for you to approach.
But as a debtor, you are required to complete two needs.
Firstly, you should have a minimum amount of $10 000 in debt to get qualified to taste the benefits of the debt settlement programs.
Secondly, you should be already behind on your minimum monthly payments, so that it will increase the bargaining power of the negotiators of your company, which will help you obtain a favorable deal.