SOURCE: Total Debt Relief

October 14, 2010 17:00 ET

New Debt Relief Through Settlement Regulations to Change How Americans Receive Debt Relief

Big Changes Are Coming for the Debt Relief Industry; Total Debt Relief Explains How These Changes Will Affect Americans in Need of Credit Card Debt Help

LOS ANGELES, CA--(Marketwire - October 14, 2010) -  Debt relief companies have been under the media's eye in the past few months due to the soon to come laws and regulations. These laws will hinder certain practices used by debt settlement companies. What some are beginning to wonder is whether the practice of debt negotiation will be able to survive after these laws take effect.

What's changing?
The two biggest changes consumers should be aware of is the method in which debt settlement companies receive fees and the marketing practices involved in getting new customers.

Fee Collection: Settlement companies can no longer acquire fees before a service is rendered. Therefore a settlement company must negotiate the debt before receiving payment. There will also be restrictions on how much they are allowed to charge.

Marketing Practices: The FTC has created new guidelines in regards to the advertising involved with debt settlement companies. Companies are no longer allowed to make claims that can't be supported. For example a company can't promise to eliminate a certain percentage of debt in advertisements.

Can Debt Still be Settled?
Yes, after the new laws take place settlement companies can still act as a mediator between a consumer in debt and a creditor looking to collect debts. These laws were set in place to protect consumers from debt relief scams and ensure a negotiation actually takes place and debts are eliminated at the end of the program.

Consumers who are looking for debt relief should talk with a representative from prospective debt relief companies to ensure they will be in operation after the new laws go into effect.

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

Contact Information

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    Total Debt Relief