Credit Card Debt Law by Dermot Farrell

http://www.creditcarddebtsecrets.org

If you are facing the necessity of either joining a credit card debt relief program or filing for bankruptcy, the legal implications of your actions may well be of concern to you. After all, it is bad enough been in debt without having to think about lawsuits over missed credit card repayments! Thankfully, however, thanks to recent changes in credit card debt law legislation the credit card debt law is actually working for you! We all know about the possibility of court cases over our unpaid debts, with the possibility of enforced payments, repossession of possessions and so on. However, the law is not always against us, and in this case thanks to recent changes in credit card debt law, you are now able to receive an incredible amount if legal protection, if you choose to sign up to a credit card debt settlement plan.

Recent Changes to the Credit Card Debt Law! In 2010, the Federal Trade Commission (FTC), made some changes to the credit card debt law, which counter, the unethical activities of some credit card debt relief companies. Due to the turn down in the World economy in recent years, a record number of debtors have applied for credit card debt settlement. While many debt relief companies have provided good service, some companies, had been charging excessive upfront fees and monthly servicing fees, while they negotiated with the creditors on behalf of the debtor. In many cases the debt relief company produced either no financial savings or a very poor settlement. The unfortunate debtors now found themselves worse off than when they started the process, because their debts had since increased due to the interest which had been gathering on their credit cards. This combined with the fees paid out to these unethical debt relief companies, resulted in a barrage of complaints been made to the FTC. The FTC listened to these complaints and made the relevant changes which now bring about a remarkable level of financial security and legal protection for any concerned debtor. While the new credit card debt law is quite extensive, in brief summary it basically states the following: 

The credit card debtor pays into a special account which is owned and managed by the debtor. The debtor can withdraw the funds at any time, so at no stage during the settlement plan, does the debt settlement company have control of the debtor’s finances.



The credit card debt settlement company has to deliver significant reduction (or at least changes in the level of debt in at least one of the debtor’s credit cards prior to receiving any payment). So there are no more upfront repayments!



The credit card debt settlement company can only charge the debtor a fee after at least one payment to the credit card company has been made by the debtor.



The debt relief company can only charge a fee which is proportionate to the percentage of the credit card debt savings which they have settled on behalf of the client.

Having a debt problem is bad enough, without having to face court cases, and yet for many debtors who are finding it difficult to make their monthly repayments, this is what they have to face up to on a regular basis. If you, are finding yourself in this difficult position you may be wondering what to do next? Indeed if your debts are badly out of kilter, you may well be considering the debt settlement option, and comparing it against the last and most desperate option which involves filing for bankruptcy. Although debt settlement is not necessary a better option than bankruptcy, at least now if you are considering it, there is some measure of legal reassurance. The recent changes to the credit card debt law mean that if you sign up for a debt settlement program, that no money will have to be exchanged between yourself and the debt settlement company until they produce substantial savings on your debts! While, been in debt is a painful experience, at least now if you feel the need to join a debt settlement program, at least the credit card debt law will provide legal protection and financial reassurance, which may go a long way towards making the credit card debt settlement process a more palatable pill to swallow!