If you are facing the necessity of either joining a credit card debt relief program or filing for bankruptcy, the legal implications of your actions may well be of concern to you. After all, it is bad enough been in debt without having to think about lawsuits over missed credit card repayments! Thankfully, however, thanks to recent changes in credit card debt law legislation the credit card debt law is actually working for you!

1. By Dermot Farrell
Copyright © 2012
http://www.creditcarddebtsecrets.org
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

2. If you are facing the necessity of either joining a credit card debt relief program or
filing for bankruptcy, the legal implications of your actions may well be of concern
to you. After all, it is bad enough been in debt without having to think about
lawsuits over missed credit card repayments! Thankfully, however, thanks to
recent changes in credit card debt law legislation the credit card debt law is
actually working for you!
We all know about the possibility of court cases over our unpaid debts, with the
possibility of enforced payments, repossession of possessions and so on. However,
the law is not always against us, and in this case thanks to recent changes in credit
card debt law, you are now able to receive an incredible amount if legal
protection, if you choose to sign up to a credit card debt settlement plan.
Recent Changes to the Credit Card Debt Law!
In 2010, the Federal Trade Commission (FTC), made some changes to the credit
card debt law, which counter, the unethical activities of some credit card debt
relief companies. Due to the turn down in the World economy in recent years, a
record number of debtors have applied for credit card debt settlement. While
many debt relief companies have provided good service, some companies, had
been charging excessive upfront fees and monthly servicing fees, while they
negotiated with the creditors on behalf of the debtor.
In many cases the debt relief company produced either no financial savings or a
very poor settlement. The unfortunate debtors now found themselves worse off
than when they started the process, because their debts had since increased due
to the interest which had been gathering on their credit cards. This combined with
the fees paid out to these unethical debt relief companies, resulted in a barrage of
complaints been made to the FTC. The FTC listened to these complaints and made
the relevant changes which now bring about a remarkable level of financial
security and legal protection for any concerned debtor.
While the new credit card debt law is quite extensive, in brief summary it basically
states the following:
 The credit card debtor pays into a special account which is owned and
managed by the debtor. The debtor can withdraw the funds at any time, so
at no stage during the settlement plan, does the debt settlement company
have control of the debtor’s finances.
 The credit card debt settlement company has to deliver significant
reduction (or at least changes in the level of debt in at least one of the
debtor’s credit cards prior to receiving any payment). So there are no more
upfront repayments!
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org

3.  The credit card debt settlement company can only charge the debtor a fee
after at least one payment to the credit card company has been made by
the debtor.
 The debt relief company can only charge a fee which is proportionate to the
percentage of the credit card debt savings which they have settled on
behalf of the client.
Having a debt problem is bad enough, without having to face court cases, and yet
for many debtors who are finding it difficult to make their monthly repayments,
this is what they have to face up to on a regular basis. If you, are finding yourself
in this difficult position you may be wondering what to do next? Indeed if your
debts are badly out of kilter, you may well be considering the debt settlement
option, and comparing it against the last and most desperate option which involves
filing for bankruptcy.
Although debt settlement is not necessary a better option than bankruptcy, at
least now if you are considering it, there is some measure of legal reassurance.
The recent changes to the credit card debt law mean that if you sign up for a debt
settlement program, that no money will have to be exchanged between yourself
and the debt settlement company until they produce substantial savings on your
debts!
While, been in debt is a painful experience, at least now if you feel the need to
join a debt settlement program, at least the credit card debt law will provide legal
protection and financial reassurance, which may go a long way towards making the
credit card debt settlement process a more palatable pill to swallow!
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org