New debt settlement laws have been introduced in the markets to make the process of settlement more genuine and reliable.
The business of settlement was present in the markets from a long period of time but it came into the lime light after the wave of inflation entered the economy.
The government has introduced this option to bring down the increasing ratio of bankruptcy and that is why it has introduced the option of debt settlement.
Due to the presence of fake and scams firms, the reputation of the settlement business is getting worst.
In fact it is true to say that people were hesitating to adopt this option just because of the fear of fake companies and just because of this the government has failed to achieve its target of bringing decline in the ratio of bankruptcy.
The fake and illegal settlement firms take the service advance fees from their customers and at the time of taking the fees, the settlement firms ensure the person regarding the elimination of credit card debts but in reality, the financial gurus of these firms never bother to contact the lenders and after some time, they make the person aware about the collapse of the process.
This thing was very upsetting for the people due to which they started switching towards the option of bankruptcy and because of this the demand for fling bankruptcy increased.
In order to make the process of settlement more reliable, the federal trade commission has introduced new debt settlement laws in the markets.
The new laws clearly say that the settlement firms are not legally accountable for charging the upfront of fees from customers.
The laws say that the settlement firms can take the fees only after delivering their services.
Due to these new debt settlement laws, the process of settlement is now getting more genuine and reliable.
Because of this all the fake and scam companies have been pushed out from the markets and now only genuine and legitimate companies are lending their services.
New debt settlement laws are really making the settlement option a better option due to which the demand of this process is increasing day by day.