SOURCE: Total Debt Relief

TotalDebtRelief.net

October 12, 2010 13:00 ET

Consumers to Find Safer Credit Card Debt Relief After New Laws Take Effect

Total Debt Relief Explains New Debt Relief Laws and How They Will Protect Consumers Against Scams

DALLAS, TX--(Marketwire - October 12, 2010) -  Over the course of the year the FTC and The Association of Settlement Companies have been in a battle over how the debt settlement industry will conduct business. Up until the end of this October debt relief companies practicing debt settlement would charge consumers fees in exchange for negotiating various debts on their behalf. Unfortunately some consumers who enrolled in these programs were charged upfront fees for enrolling in the program and did not have any of their debts settled.

Not all companies practiced fraudulent debt settlement services, but it only takes a few bad eggs for new laws and regulations to take place. At the end of this month debt settlement companies will no longer be able to charge upfront fees for their services. The only way a debt settlement company will be able to collect fees is when they have successfully negotiated a portion of the consumer's debt.

Settlement companies will also have restrictions on how much they charge consumers for their services. Traditionally companies charged a percentage of the total amount of debt they settled. The percentages varied from company to company. Now settlement companies will only be able to charge a certain percentage of the debt they are settling.

Consumers who enroll in the debt settlement programs will now be safer from the various scams associated with debt settlement. They will only be charged for services if services are actually performed by the settlement company.

For those suffering due to credit card debt, debt settlement may be an alternative form of debt relief that can eliminate a portion of their debts. Before enrolling a consumer should talk with a representative from a debt settlement company to see if their financial situation would benefit from debt settlement.

Total Debt Relief offers consumers a free debt evaluation which can be taken advantage of at their company website:

www.totaldebtrelief.net/

Contact Information

  • Contact:

    Total Debt Relief

    877-246-4592