Credit Card Debt Rules Changes

Credit Card Debt Rules Changing

Rules surrounding settling credit card debt will be changing in October.

In response to thousands of Better Business Claims, the Federal Trade Commission is imposing tighter regulations on companies that negotiate credit card debt for a fee.

The new rules will go into effect on October 27 and most directly impact companies that charge an upfront fee and conduct business over the phone.

Some of the highlights of the new rules include:

1.  More detailed disclosure of the risk involved with credit card debt settlement.
2.  Initial contact must occur in person as opposed to over the phone.
3.  No fees can be collected until the settlement company provides some sort of benefit for the consumer.

It is expected that many credit card debt settlement companies will be forced to close down and those that remain are scrambling to adjust their business model.

Posted by George Daniels on Tuesday September 28 2010, 2:37 AM EST. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0