New FTC rules crack on debt relief companies

Dec 15, 2010 by admin

About the author: The following article is contributed by Charles Anderson. He has written many articles for several financial blogs and websites. With vast knowledge & experince in finance field, he shared some important tips to get relief from difficult financial problems through his contents. He likes the page : http://www.debtconsolidationcare.com/debt-relief.html , as it provides useful information regarding debt relief.

FTC’s new rules have cracked down on the debt relief companies leaving the debt struck consumers on a safer side. The new rules have come into effect in September 27th, 2010 preventing debt relief companies from making unrealistic promises, which they have, no intention of keeping. Before these rules had come into effect, debt reliefs were taking undue advantage of financially stressed consumers. They did not even warn the consumers about the negative consequences of settling their debts with debt settlement companies or how long would it take to complete the settlement process.

All such unscrupulous practices of debt settlement companies come to an end on Monday. After the new rules passed by the FTC, it requires the for profit debt relief companies to be more honest and responsible regarding the disclosure of their services. This demands them to disclose to their consumers how much money they can settle and how long it will take to settle your debt. The debt consultants or the representatives are no more allowed to promise to reduce the principal debt amount to its half.

An eminent person of FTC’s division of financial practices has reportedly said that with the increase in the amount of US national and personal debt, more and more consumers are resorting to debt reliefs. In such a situation, the people should be well aware about where they’re really getting themselves into. They, as consumers, should be well informed about where their money is going.

Debt settlement companies with their false promises have become the most common debt relief option for most debtors in the US. They actually try to negotiate with creditors to settle debt for an amount that is less than what is owed by the debtor to the creditor. With financially stressed debtors flocking to debt settlement companies for debt help, this industry has witnessed a huge amount of growth in very less time. But gradually consumers saw an increasing number of complaints against debt settlement companies with the Better Business Bureau (BBB) and suddenly there was an upsurge in the number of companies engaging in fraudulent and deceitful activities.

With the new rules passed by the Federal Trade Commission, consumers will now have extensive and important protections that will ensure that none of the middle class consumers of US are cheated by debt relief companies. As a result of these laws, responsible companies will be making their own effort and can easily be marked apart from less reputable companies. Thus debt reliefs are covered under these tight rules of the FTC in order to function in the right manner.

Greece Debt Crisis

May 10, 2010 by admin

Greek crisis has reached a new level this week with the riots occurred. It involves three people injured in Marfin Bank in Athens, after masks protestors threw Molotov bombs in front of the bank windows.

On the Thursday night, the Greek parliament to come to talk about the bailout Greek. Although the Greek main opposition parties oppose it, but the parliament gave the final say about whether Greek will have access to 110 billion by the International Monetary Fund European Union.

Street protests are not about the bailout money, but spending cuts and tax increases are excessive. Also need to understand that the IMF bailout will not be enough to close the Greek debt.

Obviously, there will be financial assistance to help finance Europe. It is evidenced by the European Union has agreed to provide nearly USD1 trillion bailout on the date of May 10, 2010, Monday. Bailout announcement will bring investors back into the market. That was unexpected to everyone how long this will restore confidence in the market and the economy of the European Union.

Option to Eliminate Your Debt

May 3, 2010 by admin

 

Recession is the major cause for the high rate of unsecured debts in the economy. To eliminate debt, there are several options:

Bankruptcy is the most traditional way for the elimination of debts. But bankruptcy is discouraged mainly because of its future affects. As a matter of fact, once you file bankruptcy, it would be difficult for you to apply for future loans and you will also find it difficult to find new jobs or house / apartments due to this fact.

Another way is through debt settlement services; offered by the financial firms. It is sure lawful (and processed at the court). It is crucial to find good debt settlement services for clearing off your liabilities and most importantly, it should be supported by the financial experts who defend your case! Although, it is obvious that debt settlement way is clearly a better alternative than bankruptcy and due to the massive amounts of consumers in debt; creditors are agreeing to very generous debt settlement deals.

Debt consolidation is also works, through the transfer balances of all loans in to one single loan. The rate of interest also get decline for the convenience and the feasibility of the individual.