Federal credit card debt relief still elusive: FTC provides respite

Millions of Americans who are struggling with their finances are looking to some kind of federal credit card debt relief to help tide them over the bad times, but none is forthcoming. However, the government, through the FTC, has put into place some measures to ensure that, according to FTC Chairman Jon Leibowitz, strive “to make sure America’s middle class families get straight deals for their dollars.”

One of the last by-products of the so-called federal credit card debt relief is the October ruling by the FTC that no upfront fees shall be levied on applicants to private debt relief companies that offer to reduce payment terms on people’s credit card overdue amounts. This ruling was passed as a result of several companies offering debt relief services in an illegitimate manner, which led to rampant fraud and prevented genuine financial services companies from operating profitably.

One thing that needs to be understood is that there is no such thing as federal credit card debt relief; the only thing that the government has done is to ensure that there is fair play involved with regards to credit cards. Even now, there are some that believe that the government is going to help wipe out their debt, which is and always has been a myth. Only the right kind of financial education can turn this trend around.

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