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Credit Card Debt Settlement Act of 2010 Makes It Easier to Eliminate Debt

For those of us in the know about the debt relief world and industry you will have already recognized that the title to this article is pure fiction. But that doesn’t stop others from basically making stuff up to confuse consumers.

According to the recent press release sent out by a website, “Thanks to new debt settlement and relief laws passed in July 2010, credit card debt settlement has become a much more viable alternative.” That’s a nice statement, if only it were true. There is no such things as the Credit Card Debt Settlement Act of 2010. It appears the people that put out the press release just made that totally up.

I assume what the release is trying to do is confuse consumers into believing a new law has passed and that law is called the Credit Card Debt Settlement Act of 2010.

The truth is that what actually passed with not an act or law and not called the Credit Card Debt Settlement Act of 2010. It was new telemarketing sales rules promulgated by the Federal Trade Commission to regulate the debt relief industry.

Credit Card Debt Settlement Act of 2010 Makes It Easier to Eliminate Debt

The Full Release

Credit Card Debt Settlement Act of 2010 – Why Credit Card Debt Is Now Easier To Eliminate

The Credit Card Debt Settlement Act of 2010 has created a legitimate opportunity for Americans to eliminate a percentage of their credit card debt. New regulations placed on debt settlement companies has made it a much better deal for consumers. (I-Newswire) September 2, 2010 –

Americans from all walks of life are battling huge amounts of credit card debt. With unemployment rising monthly and the ability to pay off the mountain of debt getting harder, Americans are looking for alternatives. The three top options are debt consolidation, debt settlement and credit counseling. [What about bankruptcy?] Thanks to new debt settlement and relief laws passed in July 2010, credit card debt settlement has become a much more viable alternative. [How does the FTC TSR make it more viable?]

Debt settlement is usually done by a company on behalf of the consumer. The company negotiates on behalf of the consumer, attempting to lower the total amount due. This is a legitimate alternative to bankruptcy but only makes financial sense for consumers experiencing a legitimate financial hardship.

In the past, debt settlement companies were known to collect large upfront fees and negotiate a poor settlement. [A poor settlement?] Time and time again consumers were paying the debt settlement companies for a service that was promised but not delivered. Well things are different now.

The Credit Card Debt Settlement Act of 2010 [Still doesn't exist.] has changed these unsavory practices. Thanks to the new law, a debt settlement company cannot collect a fee until they have settled the debt at an agreeable amount. If a company cannot negotiate an agreeable settlement they will not collect a fee. Bottom line. Only the legitimate debt settlement companies will be able to survive. [So any company that survives is legitimate?]

A legitimate debt settlement company will have established relationships with the all the major credit card companies and other creditors of unsecured debt. [What is an established relationship?] Because of these relationships they can work with the creditors and the consumer, making sure that both parties are satisfied.

Debt settlement is a hardline approach to debt relief and is not for everyone. The consumer must be $10,000 or more in unsecured debt [That's a marketing threshold and not a minimum amount of debt needed by consumers.] and suffer a genuine financial hardship to qualify for most legitimate debt settlement programs [So some legitimate companies don't require a hardship?] However it is clearly a better option than filing bankruptcy. [Why?] Bankruptcy will stay on your credit report for at least 7 years and should always be the last option for debt relief. [Delinquent debt in debt settlement will stay on your credit report for seven years so should debt settlement be the last option for debt relief?]

There are also other debt relief options available such as credit counseling and debt consolidation. [And bankruptcy.] If you are struggling with debt and have a legitimate financial hardship [If you have an illegitimate financial hardship, get lost.] it would be wise to speak with a debt relief specialist that will go over all your options for free.

Check out the following link for a free debt relief consultation:

Free Debt Relief Advice
Or Call: 877-853-6466

About FreeDebtSettlementAdvice.com:
FreeDebtSettlementAdvice.com is a consumer based service that was established to provide consumers a way to locate a legitimate debt settlement company that has a proven track record in negotiating and settling debt.

For Free Debt Help Call : 877-853-6466

http://www.freedebtsettlementadvice.com

Company Contact Information
FreeDebtSettlementAdvice.com
Allan Sanders
425 N Main St [Apparently this company does not exist in any city or state.]
43215 [The zip code for Columbus, Ohio.]
Phone : 877-853-6466 – Source

Credit Card Debt Settlement Act of 2010 Makes It Easier to Eliminate Debt
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Angelo

    Ive purchased Jerry’s lead in the past and have been very pleased with them, true qualified leads.

  • Jerry Nordstrom

    Steve, I do enjoy that you call these people out on the carpet. To add to your article consumers and businesses alike should be aware of the Article marketing and PR marketing industry. Article marketing sites like ezineArticles.com are full of company sponsored “articles” that are more or less PR releases. They are often created to take advantage of sensational headlines, such as the “Debt Relief Act” Which as you point out is non-existent. Do a search on Credit Card Relief Act and you will find literally thousands of articles claiming that “debt negotiation is now legal because of the new Debt Relief Act” then they go on to explain the provisions under the new FTC TSR!!!

    There are a number of important points here:

    Joe Debt: If you are purchasing leads, you had better be sure they are not coming from companies that run these kinds of campaigns – you are both liable.

    Article Submission sites are making a killing off of these false and deceptive articles. They need to be held liable for their willing participation, or negligence in editorial oversight.

    Marketing companies and advertisers must be vigilant in reviewing where their ads are being displayed. Often publishers like PrLog.com and others custom create articles based around your advertisement to generate high click through rates. This would be fine IF the content they created was truthful. Unfortunately, they create sensationalized versions of the truth or use the company sponsored articles for “content”. A good example would be the “Obama debt relief articles” that lie about a new law to eliminate your credit card debts. It creates a ton of traffic, high click through rates, money for the publisher, money for the advertiser… and one fully deceived prospect.

    We at Lead Discovery have blocked nearly 950 articles claiming Obama, free Grant, or other false claims from running our ads. It is not a perfect science as we can only remove our ad from publishers we can find through the ad platforms, new sites and articles pop up every day and our reports lag behind by 3 days. It is a very difficult and expensive fight to do the right thing.

    We can only hope that in the end we will be rewarded for our honest marketing.

  • http://twitter.com/JerryNordstrom Jerry Nordstrom

    Steve, I do enjoy that you call these people out on the carpet. To add to your article consumers and businesses alike should be aware of the Article marketing and PR marketing industry. Article marketing sites like ezineArticles.com are full of company sponsored “articles” that are more or less PR releases. They are often created to take advantage of sensational headlines, such as the “Debt Relief Act” Which as you point out is non-existent. Do a search on Credit Card Relief Act and you will find literally thousands of articles claiming that “debt negotiation is now legal because of the new Debt Relief Act” then they go on to explain the provisions under the new FTC TSR!!!

    There are a number of important points here:

    Joe Debt: If you are purchasing leads, you had better be sure they are not coming from companies that run these kinds of campaigns – you are both liable.

    Article Submission sites are making a killing off of these false and deceptive articles. They need to be held liable for their willing participation, or negligence in editorial oversight.

    Marketing companies and advertisers must be vigilant in reviewing where their ads are being displayed. Often publishers like PrLog.com and others custom create articles based around your advertisement to generate high click through rates. This would be fine IF the content they created was truthful. Unfortunately, they create sensationalized versions of the truth or use the company sponsored articles for “content”. A good example would be the “Obama debt relief articles” that lie about a new law to eliminate your credit card debts. It creates a ton of traffic, high click through rates, money for the publisher, money for the advertiser… and one fully deceived prospect.

    We at Lead Discovery have blocked nearly 950 articles claiming Obama, free Grant, or other false claims from running our ads. It is not a perfect science as we can only remove our ad from publishers we can find through the ad platforms, new sites and articles pop up every day and our reports lag behind by 3 days. It is a very difficult and expensive fight to do the right thing.

    We can only hope that in the end we will be rewarded for our honest marketing.

    • Angelo

      Ive purchased Jerry’s lead in the past and have been very pleased with them, true qualified leads.

  • Steve Rhode

    Thank you for the kind words.

    I think what my critics miss is that I am not against debt relief companies, in fact I even provided testimony to the FTC about why we need them. See Federal Trade Commission Should Allow For-Profit Credit Counseling and Debt Settlement Firms to Assist All Consumers.

    I usually get attacked when I speak out about a practice that is either illegal, deceptive, questionable, or grossly unfair to consumers. My opinion is that good companies can make money providing an ethical and transparent service for which the consumer finds value and benefit. If companies do that then there would be a fraction of complaints and people that feel like they’ve been screwed.

    It is interesting that the fallback position of some of my detractors has been to personally attack me and post blatantly incorrect information about me on the web. So when someone notices that I do try to act fairly, I really appreciate it.

    Steve

  • Joe_debt_jr

    I really enjoy your input and you lay out the facts right on the dot. I been reviewing all your blogs and I must say to all the folks that is against you on this should take this as free information that is resourceful so they dont get hit with big fines by the FTC or even better be able to survive earning a decent living without breaking any laws and sleep good at night knowing they did the right justice for consumers so if anything they should thank you for putting your time and effort in producing this website because if you didnt have all these information for them to read whether good or bad, all companies may just continue operating blindly and not know or understand the severe effect it might have on their business if caught violating any rules or regulations. thanks steve and look forward in my donation to your legal fees. :)

  • Steve Rhode

    I think you can count on that.

    It’s a fools play. Tax players like Roni Deutch get hit hard to. In fact the recent suit against Deutch in California sounds a whole lot like a debt settlement bad apple. Read Roni Deutch, the Tax Lady who was Getting Into Debt Settlement, Sued for “Heartless Scam”.

    You know these are the same players that wanted to jump into extended warranties, auto loan modifications, etc.

    Can you hear me shaking my head from there?

    Steve

  • Joe_debt_jr

    Steve thanks for a quick reply. I am also hearing alot of debt settlement companies switching over to tax resolutions selling taxes to consumers and that the TSR will not affect them from collecting their upfront fees for their work. is this true or we gonna hear another storm of bad apples jumping on this opportunity to screw tax payers aswell?

  • Steve Rhode

    Joe,

    My understanding is that it cover a wide spectrum of debt relief providers such as Debt relief providers include credit counselors, debt counselors, debt negotiation companies, debt settlement companies, debt management plan providers, interest reduction companies, balance reduction companies, elimination of contractual relationship schemes, etc.

    The definition of a debt relief service is “any service or program represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a person and one or more unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, interest rate, or fees owed by a person to an unsecured creditor or debt collector.”

  • Joe_debt_jr

    Steve is this new TSR ruling just for debt settlement and credit counseling only or is it for any selling over the telephone, whether its for “products, goods or services” an example someone said Do it Yourself debt settlement software is covered is this true. so if i purchase a software that allows me to settle my own debt. is it fair for me to pay more than what i feel the software is worth? example, the agreement is stating I have to pay $750 for every $5000 debt i owe. so if i owe $20k i have to pay them $3000 and they would take installments on it and i go on and use the software to settle my credit cards on my own. i feel that is alot of money its like me buying a do it yourself manual to remodel my bathroom and the contractor sends me the booklet and say for every square inch of my restroom i have to pay the same amount as having the contractor doing it for me. but sense that contractor i want advice on the remodeling doesnt live in my state but he has a do it yourself handbook with all his techniques is that fair?

  • Steve Rhode

    If this was an advertisement my opinion is that in this case, yes. It seems to be based on lies and false advertising is already not allowed. The lies in the release have nothing to do with the new TSR but I think they would fall under violations of existing rules of truth in advertising.

  • http://northeast-properties.com Andy Faria

    I understand that after 9/27 a press release like this would never fly.

    My questions: After 9/27 can the FTC go after advertisements that were posted before 9/27? Is a DS provider responsible for advertisements or claims made before 9/27?

    I ask because there is so much of this crap out there.

    • http://GetOutOfDebt.org Steve Rhode

      If this was an advertisement my opinion is that in this case, yes. It seems to be based on lies and false advertising is already not allowed. The lies in the release have nothing to do with the new TSR but I think they would fall under violations of existing rules of truth in advertising.

      • Anonymous

        Steve is this new TSR ruling just for debt settlement and credit counseling only or is it for any selling over the telephone, whether its for “products, goods or services” an example someone said Do it Yourself debt settlement software is covered is this true. so if i purchase a software that allows me to settle my own debt. is it fair for me to pay more than what i feel the software is worth? example, the agreement is stating I have to pay $750 for every $5000 debt i owe. so if i owe $20k i have to pay them $3000 and they would take installments on it and i go on and use the software to settle my credit cards on my own. i feel that is alot of money its like me buying a do it yourself manual to remodel my bathroom and the contractor sends me the booklet and say for every square inch of my restroom i have to pay the same amount as having the contractor doing it for me. but sense that contractor i want advice on the remodeling doesnt live in my state but he has a do it yourself handbook with all his techniques is that fair?

      • http://GetOutOfDebt.org Steve Rhode

        Joe,

        My understanding is that it cover a wide spectrum of debt relief providers such as Debt relief providers include credit counselors, debt counselors, debt negotiation companies, debt settlement companies, debt management plan providers, interest reduction companies, balance reduction companies, elimination of contractual relationship schemes, etc.

        The definition of a debt relief service is “any service or program represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a person and one or more unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, interest rate, or fees owed by a person to an unsecured creditor or debt collector.”

      • Anonymous

        Steve thanks for a quick reply. I am also hearing alot of debt settlement companies switching over to tax resolutions selling taxes to consumers and that the TSR will not affect them from collecting their upfront fees for their work. is this true or we gonna hear another storm of bad apples jumping on this opportunity to screw tax payers aswell?

      • http://GetOutOfDebt.org Steve Rhode

        I think you can count on that.

        It’s a fools play. Tax players like Roni Deutch get hit hard to. In fact the recent suit against Deutch in California sounds a whole lot like a debt settlement bad apple. Read Roni Deutch, the Tax Lady who was Getting Into Debt Settlement, Sued for “Heartless Scam”.

        You know these are the same players that wanted to jump into extended warranties, auto loan modifications, etc.

        Can you hear me shaking my head from there?

        Steve

      • Anonymous

        I really enjoy your input and you lay out the facts right on the dot. I been reviewing all your blogs and I must say to all the folks that is against you on this should take this as free information that is resourceful so they dont get hit with big fines by the FTC or even better be able to survive earning a decent living without breaking any laws and sleep good at night knowing they did the right justice for consumers so if anything they should thank you for putting your time and effort in producing this website because if you didnt have all these information for them to read whether good or bad, all companies may just continue operating blindly and not know or understand the severe effect it might have on their business if caught violating any rules or regulations. thanks steve and look forward in my donation to your legal fees. :)

      • http://GetOutOfDebt.org Steve Rhode

        Thank you for the kind words.

        I think what my critics miss is that I am not against debt relief companies, in fact I even provided testimony to the FTC about why we need them. See Federal Trade Commission Should Allow For-Profit Credit Counseling and Debt Settlement Firms to Assist All Consumers.

        I usually get attacked when I speak out about a practice that is either illegal, deceptive, questionable, or grossly unfair to consumers. My opinion is that good companies can make money providing an ethical and transparent service for which the consumer finds value and benefit. If companies do that then there would be a fraction of complaints and people that feel like they’ve been screwed.

        It is interesting that the fallback position of some of my detractors has been to personally attack me and post blatantly incorrect information about me on the web. So when someone notices that I do try to act fairly, I really appreciate it.

        Steve

  • Andy Faria

    I understand that after 9/27 a press release like this would never fly.

    My questions: After 9/27 can the FTC go after advertisements that were posted before 9/27? Is a DS provider responsible for advertisements or claims made before 9/27?

    I ask because there is so much of this crap out there.

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