Considering the global economic recession and its impact on various sectors and sub sectors of the US economy, the Federal government of USA has codified a new set of rules in order to safeguard or to maintain the living standards of their people.
Their main focus is placed on debt settlement industry.
In other words, to make the above industry a reliable one, any person can approach it without any doubt.
In fact, the year 2010 marks a turning point of this industry.
The recent researches which were regulated on debt negotiation and bankruptcy suits bring out the fact that many consumers were cheated during debt settlement processes.
Therefore, the new Federal Trade Commission laws are made immediately to safeguard the consumers from frauds.
Since the laws were not that strict a couple of years ago, the debt settlement companies started demanding their service charges in advance.
They manipulate the consumers to pay the demanded sum as soon as possible to benefit their plans.
Once paid, the fraudulent companies disappear at a glance.
This method was used by the fake companies frequently, as it is fast.
However, getting to know these mal practices, the new F.
T.
C.
laws prohibit the settlement companies to get payments in advance.
They are permitted to collect funds once they have successfully completed their task.
This law comforts the consumers as they are not burdened with upfront fees.
Further comfort can be gained as the consumer is given a chance to ignore the settlement deal, if the debt clearance company is unable to get the amount of discount desired by the consumer.
Under this measure, the negotiation companies are strictly bound to fulfill the consumer needs in order to save their own skin.