| Debt settlement in 2010 has received a boost | | | | is revived to its previous glory. The law will become |
| because of the government policies which were | | | | effective from 27th October of this year and once |
| targeted towards improving the debt settlement | | | | the law is enforced, the very existence of these |
| process. These policies and laws have been designed | | | | scam companies will be threatened. |
| to get rid of the fraud settlement companies so that | | | | The new law will force the companies to first |
| the consumer interest can be protected and for | | | | eliminate the debts of the consumers by the amount |
| improving the image of the settlement industry as a | | | | that they have promised to the consumers and only |
| whole. The exploitative methods used by these | | | | then can they demand their service fee from the |
| companies left thousands of consumers in deeper | | | | consumers. This means that the method of upfront |
| trouble. These companies took money from the | | | | fee collection will no longer exist and the fraud |
| consumers as advanced fees for the services that | | | | companies which survived by charging advance fees |
| they promised to provide and then eventually they | | | | will now be forced to move back and they will |
| did not help the debtors. They returned to the | | | | eventually have to leave the stage. With this |
| debtors after a few months and reported that the | | | | restriction on upfront fee collection, the settlement |
| creditors were not ready to accept the debt | | | | industries will have to first ensure that the consumers |
| settlement offer and that they are actually | | | | are actually able to get relief from their debts and |
| demanding the repayment of the entire amount of | | | | then the companies will get paid. This can take years. |
| the unsecured loan. Since the consumers already lost | | | | This is because of the fact that a typical settlement |
| enough money they either decided to repay their | | | | negotiation procedure takes 1-3 years to conclude |
| creditors in full or they decided to use the option of | | | | and the companies will have to wait for that long. |
| bankruptcy filing. | | | | Those who cannot wait are welcome to leave. The |
| The Federal Trade Commission noticed this and | | | | legit companies have ample strength in terms of |
| designed a new law which can not only protect the | | | | capital and will be able to sustain for that long. This is |
| interest of the consumers but also ensured that the | | | | how the FTC is improving the debt settlement |
| reputation of the debt settlement industry, which | | | | process and settlement in 2010 is actually meant for |
| was lost by the sinister activities of these companies, | | | | protecting the interests of the consumers! |