Credit debt settlement act was announced for two reasons: the government did not want their efforts to fail and the government wanted to stabilize the economy with the help of liability settlement. Credit debt settlement act changed the entire environment of the industry. It did not only alter the illegal side; it also altered the legal area of the industry. The effects of this act are:
1. All the legal firms started facing losses as they were not able to continue with illegal work. Huge population of the illegal firms left the industry and those remaining are expected to leave soon.
2. The legal firms which were shadowed due to illegal firms have started to show up. The number of legal firms have increased and the competition to become the best and the most legitimate firm is intense. The consumers are spending less efforts and time on locating legitimate service providers; they are giving more time to look for the best firms in the business. Those who do not have the ability to hire the best are getting legal services.
3. The legal environment was very lazy and ineffective when the act was not passed. Now the legal firms have started working hard and they are producing efficient and effective results. They are trying to get the best deals and they are aware that if they do not work hard and obtain quality results then they will not be paid a penny. They have even started charging low fees in order to get more and more clients. The best in the business have lost their competitive advantage and are working hard. The number of people getting relaxation from liability has increased.
4. Due to changes in the legal environment; the economy and the creditors have benefits. The creditors are recovering money at good speed and they have increased the level of lending. They are making more profits and recovering losses faced due to insolvency.
5. As the lenders have started lending more; the investments in the country have even increased and new businesses have opened up and people are successfully getting employed. People now have a clear mind to make decisions and with their qualitative decisions they are helping the economy.
You should now stop ignoring your liability issues; get them solved by a liability negotiation program and help the country in achieving economic growth. You can aid a lot of people with your positive decisions.