Due to these difficulties faced by the debt ridden consumers, a good decision was taken by the Federal Trade Commission to introduce some new laws to the debt settlement field.
These new debt regulations which were introduced by the FTC have direct impacts on many parties.
First of all, it is essential to understand how the settlement field would be affected by these new debt settlement rules.
As a matter of fact, with the introduction of these regulations, the profit settlement services will not be able to charge massive upfront fees from their consumers before they actually settle the unsecured liabilities.
So, due to these laws, there will be less competition among the relief services since most of the profit settlement services will not be able to compete with the legitimate companies without enough capital as they depend mostly on the upfront fees charged by the consumers.
So, these new debt regulations will have different effects on different groups.
In fact, the profit settlement companies will be affected in a bad way as they will not get the opportunity to depend totally on the money of the consumers.
Anyhow, this is a positive fact for the legitimate settlement services since the reputation of debt settlement in general will be protected through these laws.
In addition, the consumers are the ones who are affected by this law in the most positive manner.
As a matter of fact, as there will be less profit settlement services, the consumers will be able to eliminate their liabilities through the most legitimate relief services in their state.
At the same time, as no company can charge upfront fees from the consumers, the public will be safer than anytime when dealing with these companies.
So, when all these facts are considered, it is clear that these new rules have become really important for the consumers who are trapped with massive financial problems especially in a time of economic downgrade.