What Governmental Debt Relief Action Could Mean For American Borrowers

The consumer finance initiatives recently enacted by the federal government have hardly had sufficient time to make clear the degree of their effects on common American consumers. However, unprejudiced spectators have given doubtful approval to the legislative debt relief ventures. The strengthening of the FTC’s powers to protect debtors against the debt relief companies could not probably have the similar consequences upon the United States economy as the investment banking bill recommended by Senators Barney Frank and Chris Dodd. Still, some analysts predict that the new Consumer Financial Protection Bureau, an enforcement arm of the FTC shall slowly provide same beneficial repercussions i.e., forcibly restrain the deceptive practices of illegitimate firms. 

The government spent more than a decade to assist the fortunes of the banking community as credit card debt expenses grew to be an ever-greater spur. However, the elected representatives of the Washington D. C. have at last started responding to the requirements of the voters. The majority of the media coverage focused far on the inauguration of the CFP division, which supposed to provide precise guidelines on the ways credit card debt relief firms advertise their services and charge fees. Besides actively implementing new decrees for the companies to follow, the bureau should also be granted adequate subsidy to kick off their own inquiries about suspected debt relief operations and follow up on claims of fraudulent practices.

There must have been some progresses over recent years in terms of the restrictions placed upon business lenders and the entire borrowing system. For instance, the limits placed upon credit reporting agencies innately helped lower the playing field for inferior consumers by permitting common borrowers immediately clean up creditor flaws without having to resort to high priced legal representation in order to force the credit bureaus to take notice.

Unfortunately, though the government’s steps regarding credit scores certainly counterbalance the justice of lending feasibility for consumers at the bottom edge, one could ask if or not enhanced access to credit card debt did substantially better the fiduciary status of the average American family.

However, only time will tell whether the Consumer Finance Protection bureau does more damage or good. Some debt relief advocates would challenge that the amplified scrutiny on debt settlement negotiations may reduce the efficiency of benevolent counselors, but steps must be taken to safeguard borrowers from pure scams.