A press release crossed my desk about “Credit Card Debt Settlement Act Of 2010” and I had to do a double take. Wha-wha-what!
The release seems to create a new advertising opportunity for less than straightforward debt settlement companies to start sending out official looking government mailers promoting the Credit Card Debt Settlement Act Of 2010, an act which does not exist.
My assumption is the release is trying to turn the new Federal Trade Commission telemarketing sales rules into a new legislative action signed by President Obama.
The Credit Card Debt Settlement Act of 2010 will force the debt relief companies to live up to their promises and negotiate successful settlement deals. The days of collecting large upfront fees with no performance guarantee are over. The risk has been taken away from the consumer and placed on the debt settlement companies.
This new legislation is expected to put all the shady debt relief services out of business. Only those services that have legitimately been settling consumers’ debts will be able to survive. The debt settlement process does work when done in the correct way and with the right company. The legitimate debt settlement companies will have enough confidence to collect their fees on the back end when they successfully settle the debts.
The release was put out by a site related to another site that TASC had promoted to consumers previously. You can read that article here.