How Recent Changes in the Law Can        Help You to Settle Your Debts                                By Dermot Farrell   ...
Credit card debt settlement has never been safer, thanks to recent changes to thelaw. In September 2010, the Federal Trade...
Only after they have saved their customers some money can they charge themany fees, and these fees have to be in proportio...
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Credit card-debt-relief

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Credit card debt settlement has never been safer, thanks to recent changes to the law. In September 2010, the Federal Trade Commission (FTC), made some fairly extreme changes to the credit card debt relief law in an effort to counteract some abuses which had been taking place between credit card debt relief companies and their clients. Thanks to these changes there has never been a better time in which to sign up to a credit card debt settlement scheme.

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Credit card-debt-relief

  1. 1. How Recent Changes in the Law Can Help You to Settle Your Debts By Dermot Farrell Copyright © 2012 http://www.creditcarddebtsecrets.orgThe Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  2. 2. Credit card debt settlement has never been safer, thanks to recent changes to thelaw. In September 2010, the Federal Trade Commission (FTC), made some fairlyextreme changes to the credit card debt relief law in an effort to counteract someabuses which had been taking place between credit card debt relief companies andtheir clients. Thanks to these changes there has never been a better time in whichto sign up to a credit card debt settlement scheme.Because of the global turndown in 2008, a record number of Americans signed upfor credit card debt settlement programs. However some of the credit card debtrelief companies where less than ethical in their dealing with their clients; in somecases they charged considerable upfront fees, as well as servicing fees, and yetmore often than not they did not deliver good results.The FTC countered these abuses by rolling out the following changes to the creditcard debt relief law:  The debt relief companies cannot charge upfront fees for any customers who sign up to a credit card debt settlement plan.  The debt relief company can only charge the customer a fee after they have brought about a reduction in at least one of their clients outstanding credit cards.  The debt relief company can only charge the customer upon the customer making at least one payment on the card, which has undergone the debt reduction.  The debt relief company has to charge fees which are appropriate to the amount of money which they save their customer during the debt settlement process.  The debt relief company has no control over the debt settlement bank account which the customer pays into. With debt settlement, the debtor pays into a special bank account which will be used to pay their creditors at the appropriate time. With the new changes in the credit card debt relief legislation, the customer can withdraw money from this account at any time; indeed they have full control over this special account. How Changes in Credit Card Debt Relief Affects YouThe implications of these changes, in the credit card debt relief law, mean thatit’s up to the debt settlement company to produce results. The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  3. 3. Only after they have saved their customers some money can they charge themany fees, and these fees have to be in proportion to the amount of money whichthey have managed to save their client.What this means in practice is that if you are considering signing up for a debtsettlement program, that at least you will not have to worry about the credit carddebt settlement company ripping you off. Rather, they are the ones who have totake a chance on you.The reason why so many debtors were losing money on credit card debt settlementprograms at this time was due to an abusive attitude of some credit card debtrelief companies. Since the customer paid an upfront fee the credit card debtsettlement company did not have to vet their clients properly in the first place,because regardless of the outcome they would make some money out of theprocess.With these recent changes to credit card debt law it means that some debtors,who would normally have signed up for such a program, will now be turned downbecause the credit card debt relief companies are only interested in dealing withdebtors who have debt problems which are definitely open to settlement. Whilethis may initially disappoint some debtors, at least it means that if the credit carddebt relief organization signs you up, that they are fairly confident that they canget a good settlement for you.Consequently, if you have been holding yourself back from signing up to a creditcard debt settlement program, over concerns regarding the possibility of beenripped off, then think again.These recent changes in credit card debt relief law are working on your side and,while credit card settlement is not for everyone and certainly requires some dueconsideration on account of the potential downsides of the debt settlementprogram itself, at least you now no longer have to concern yourself over potentialabuse of the fees charged for this service by the credit card debt settlementproviders. The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

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