FTC's new rules that had been passes to bring a control over scam artists practicing debt consolidation practices will soon be coming to effect on the 27th of September. This is a desperate attempt of the FTC to stop the unscrupulous practices of the scam debt consolidation practices carried on by for profit debt consolidation and settlement companies. The debt consolidation non profit companies are not included among this new set of rules. The debt consolidation and the debt settlement companies often take undue advantage of financially stressed consumers by promising those magical and unrealistic ways to get rid of their debt within a very short span of time. Though they reduce their credit card debt, they charge huge upfront fees from the desperate consumers. A little or no effort is made to reduce the burden of debt but the consumer finds himself in a worse shape than what he was before. The initial changes in the FTC's new regulations also cover the way such debt relief products are being marketed in the US. Telemarketers are also exaggerating their services and trying to influence their customers into accepting their offers. If you're mired in debt, you can certainly seek help of debt consolidation non profit companies, but if you do not get the required amount of help from trustworthy non profit companies, you can always run to debt consolidation for profit companies. As the FTC has passed these new rules, consumers are now better off and are well safeguarded by the Federal Trade Commission. The rules prohibit debt relief providers from misrepresenting their services to the debt struck consumers who are frantically looking for solutions to get rid of their debt burden. The companies are also required to disclose potential negative consequences of settling their debts with such debt relief companies. An eminent spokesperson of an online financial company has reportedly said that this is perhaps the best rules passed in favor of the debt stressed Americans. Consumers will now have substantial and essentials protections that will guard them against becoming prey to debt consolidation scam companies. The FTC will also reward the trustworthy and responsible providers and rank them to a better position than the scam companies. This will again help the consumers from distinguishing between good companies and bad ones. The new FTC rules have been designed to help the hardworking people of America who are going through a credit crunch. Such laws have left out the debt consolidation non profit companies and will help a number of states who have been waging a protest against the malpractices of such scam companies since years. BM
