'Consumers are the losers with a debt settlement industry in crisis.'

VENTURA COUNTY, Calif., May 5 /PRNewswire/ -- People today are facing more immediate financial pressure than ever before. Jobs are vanishing, foreclosures are trending at record numbers and more people are turning to bankruptcy-- needlessly.

What consumers lack today are real concrete solutions to help them deal with problem debt. The only legal solution that is approved in all states is bankruptcy. But what about consumers that don't want to go bankrupt? What options do they have?

The first reaction that comes to mind is credit counseling as an alternative to bankruptcy. However, this solution does not truly represent consumers. It is not legally binding between the creditor, the consumer or the credit counseling group. Credit counseling groups are compensated by creditors for collecting money from consumers and returning it to creditors. Credit counseling does not represent the consumer in a fiduciary capacity at a time when people need independent advice the most.

Debt settlement allows the consumer to eliminate their financial liability in a mutually agreeable way for less than the full amount owed based on what they can afford. They can actually achieve results in a difficult situation, resolving their money troubles without bankruptcy. Debt settlement helps consumers avoid bankruptcy while returning a fair and negotiated amount to the creditor in a legally binding way. It helps the consumer to be represented by a true third party-the debt settlement company.

"I am extremely concerned for consumers," said Alex Viecco, VP and co-founder of New Era Debt Solutions. "There's been an influx of sub-prime mortgage lenders rushing on to the settlement bandwagon trying to make a quick buck."

Today, many new debt settlement companies are appearing. These companies, many of dubious character and expertise, are creating problems that are leading to a patchwork of state legislation that will close or highly regulate debt settlement companies to protect consumers.

New Era Debt Solutions, a debt settlement company, wants federal regulators to proactively come out with legislation to regulate the debt settlement industry, protecting the consumer and forcing opportunist debt settlement companies off the map.

The debt settlement industry desperately needs one set of federal legislation that provides a clear framework of protective rules allowing consumers access to the valuable tool of debt settlement.

"We don't want to stand by and watch consumers be robbed of access to debt settlement, leaving them with only bankruptcy as a real and final option to their debt problems," said Dan Smith, President and CEO of New Era Debt Solutions. "People want to pay what they are able to afford and avoid bankruptcy. Debt settlement allows them to do that. The question is, will regulators and legislators step up and protect consumers by protecting debt settlement through common sense federal regulation? Our goal is to help create regulation for the sake of the consumers and the survival of a valuable industry." You can contact us at 888-639-4050.

CONTACT: Alex Viecco of New Era Debt Solutions, 1-888-639-4050, alex@neweradebtsolutions.com

SOURCE New Era Debt Solutions

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