The new consumer protect laws and the debt settlement industry has a deep bonding between them. It has been found that because of these consumer protection laws, the settlement industry flourished very rapidly. The consumers also benefited from this and are enjoying debt free life which is financially well balanced. How? How did the industry flourish? How did the consumers benefit? How did you benefit? Let us find out!
With the new consumer protection laws, the Federal government introduced amendments in the bankruptcy laws and made it difficult for the consumers to file for bankruptcy at their will. The consumers are now required to qualify for the same and if the counselors think that a consumer can repay the debt in either full or in parts, he or she is not allowed to file for bankruptcy. This saved the consumers as well. The consumers are saved because they no longer face the problem of low credit score and loss of credibility for years. They no longer become sub-prime consumers. Thus, with amended bankruptcy laws, the consumers managed to get alternate relief programs which did not only save their money by debt elimination but also eliminated future financial sufferings. These amended laws opened up the path for debt settlement.
On the other hand since the creditors suffered a lot due to increased bankruptcy filings, they were given tax breaks and stimulus cash support and were asked to agree for settlement deals. When the creditors agree for settlement deals, they lose money and interest earning. This loss in interest income is covered by the reduction in the taxes. The principal money that they lose because of the settlement deal is covered by the stimulus cash. The creditors are allowed to use this cash to pay salaries to their staff and to cover other organizational costs. Since the creditor are backed by such financial aids from the government, they opened up for debt settlement. The consumers started benefiting. They succeeded in eliminating their debts by at least 50% and up to 70% and became debt free in a period of 1-3 years. Thus, if you are a debtor and looking for a way to eliminate debt, use debt settlement method and enjoy the benefits of the new consumer protection laws!
Source by Percy Wilson