With the passage of debt settlement act 2010, debt negotiation will attract more consumers as it involves less risk on consumer.
This act will reform the law relating to debt relief service and clean up the relief industry.
As consumers, it is important for you to have a thorough knowledge about how debt negotiation will change in 2010.
As the debt relief industry was vastly expanding, many fraudulent companies were established in the field.
The only objective of these fake companies was to earn a huge profit from the troubled borrowers.
These companies offered many attractive benefits to consumers.
Considering the unbelievable benefits they offer, many consumers tend to enter these companies.
Moat of the settlement programs keep a practice of collecting advance fees from the borrowers.
Genuine relief programs always try to help the consumer to get out of debt.
But many fake companies just collect the non refundable up front fee without even settling the debt.
At the end the poor consumer becomes hopeless.
Therefore it is important to know how debt settlement will change in 2010.
The debt settlement act 2010 is the solution brought forward for this problem.
It bans the advance collection of fees and mitigates the risk involved in debt relief service.
Here it allows the relief programs to collect their charges, if the deal is successful.
But they can not collect upfront fees any more.
Therefore we can see the enactment of these rules has given the full legal protection to the poor borrowers who were willing to go for negotiations.
The troubled consumers can now trust on the settlement industry and eliminate their financial obligations in a faster means.
That is how the new rules have changed the debt settlement industry in 2010.