Federal Trade Commission is responsible for making laws that are related to business and trade. It also makes policies regarding credit card issues. Last year, the economic recession made financial state of many people worse. Most of these people were those who got fired from their companies. None the less, the ones who used to pay the bills with the money from salary were left helpless. Prices of products were also increased. These people had no other option than to use credit cards to pay their bills. Due to consistent bad economic situation, they could not pay back to their creditors. Creditors were not ready to give them leverage so they had only one option and thus many people filed petitions for bankruptcy.
Bankruptcy cases were in great numbers and creditors suffered from huge losses. According to stats, bankruptcy cases filed by creditor card holders were nine out of ten. The Government had to stop these people from filing bankruptcy so it made new policies regarding chapter 7 and chapter 13 bankruptcies. Now, it is not very easy to apply for bankruptcy. Similarly, the government prohibited the settlement companies to take upfront fees. People were afraid of consulting these agents because most of them were illegal. They used to withdraw money from clients’ bank accounts but they did nothing for them. That is why settlement process was not considered a good option.
New laws have made settlement very easy. The Government’s strict policies regarding bankruptcy have really bailed out credit card companies. These companies were not ready to provide leverage to their clients but when the economic recession made financial state of many card holders’ worse, creditors started to think over the settlement option. This was the only option that can save their investments. Now, it not very difficult to get a settlement deal. It may seem very hard in the beginning but you will end up with a good offer.
Customers need to get assistance of legal advisors in this regard. Settlement agents know all the tricks to settle the debts as soon as possible. They use network of companies to get a very good offer easily.