Debt Settlement Act 2010 – The FTC’s Strategy To Eliminate Bad Debt Industry Practices
February 19th, 2011 | 
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Do you know the importance of debt settlement act 2010? If you are a borrower who owes a massive unsecured debt amount and considering debt negotiation, you should be aware of this act. Debt settlement act 2010 has come in to force as a result of Federal Trade Commission’s (FTC) strategy.
After doing a research in debt relief industry FTC could find out that there are some practices in the bad debt industry that harm the borrower. One such malpractice was collecting up front fees from consumers. As these fees were non refundable, even though the settlement deal was unsuccessful, the paid fees were not returned. Because of this consumers faced more troubles.
FTC realized the importance of a strategy to eliminate this type of bad debt industry practices. Therefore they came up with the debt settlement act 2010, as a solution for these malpractices. After enactment of this act advance fees collection became illegal. The relief companies can collect their service charges, if the settlement deal is done. That means the borrowers will have to pay the relief program only if a real relief is given to him.
This FTC’s strategy has made the debt negotiation more reliable and legitimate option of eliminating financial obligation. And it has given a light of hope to the poor borrowers who are suffering with overwhelming debt. And also debt settlement act 2010 will indirectly influence on fake service companies. They will no longer be able to survive in the field due to the stricter debt rules. At last FTC’s strategy will not only eliminate bad debt industry practices but also clean up negotiation industry.
Posted in Debt Settlement | 
Tags: Consumers, Debt Negotiation, Debt Relief, Debt Settlement, Debt Solution, Ftc, Poor Borrowers, Unsecured Debt