Start My Answer
loading...

Obama Credit Card Debt Relief Program – How to Use It

George Simons | December 02, 2022

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Hoping that the Obama Credit Card Debt Relief Program can help with your debt? Find out more about the Credit Card Accountability Responsibility and Disclosure Act of 2009 and how to use it in your favor.

There has been a lot of fictitious information on the internet in the recent past about the Obama credit card debt relief program. In fact, there's no such thing as the 'Obama Credit Card Debt Relief Program' supposedly sponsored by the former US president. Additionally, there's no government debt relief program that will underwrite your debts without any consequences.

In reality, what people call the Obama Credit Card Debt Relief Program is the Credit Card Accountability Responsibility and Disclosure Act of 2009, popularly known as the Obama Credit Card Act.

The Obama Credit Card Act of 2009 was introduced to increase transparency in the operations of credit debt relief companies. In addition, it was meant to protect consumers who signed up for debt relief programs. For this reason, the Obama administration passed federal laws that made credit card debt relief much more accessible than before.

Respond to a debt collection lawsuit with SoloSuit and win your case.

Changes that came with the Obama Credit Card Act of 2009

Amendments to the credit card debt law meant that credit debt relief companies could no longer charge customers upfront fees; they could only charge a fee once they've delivered on their promise of reducing the debtor's credit card bills.

Moreover, the bill and fee charged by the debt relief company had to be proportionate to the amount of debt reduced.

The bill also required debtors to set up a special bank account they had total control over when signing up for a debt relief company program.

What's the impact of the Obama Credit Card Act of 2009 on debtors?

Debtors are now free to sign up for a credit debt settlement program without fear of being abused or exploited. But this doesn't necessarily mean that every debtor should sign up for a debt relief program.

Credit card debt settlement programs may work for one debtor and fail for another. For instance, it's always advisable for debtors who plan on filing for bankruptcy to sign up for a debt relief program. But if you don't plan to file for bankruptcy, you may consider other credit card relief options other than a credit card settlement plan.

Another example of a debtor who would benefit from a credit debt settlement plan is someone who prefers debt settlement as a possible credit debt relief option. However, before signing up for a debt relief program, it's essential to research and learn more about credit card debt settlement.

Some of the vital questions to ask include:

  • What does credit card debt settlement entail?
  • What factors should you consider when looking for a credit card debt relief company?
  • How can you make the most of the credit card debt settlement process?

Note that the debt settlement program isn't for everyone; only opt for it if you need it or don't want to file for bankruptcy.

Some of the consequences of enrolling in a debt settlement program include:

  • It will hurt your credit score.
  • Creditors won't stop with their collection calls and actions.
  • Halting payments to your creditors may mean additional fees and higher interest charges.

Don't let debt collectors push you around. File a response with SoloSuit.

How does debt relief work?

After enrolling in a debt settlement program, you stop making payments to your credit card company but instead make payments to a designated account under your control. However, the credit card company won't stop attempting to recover the debt.

When that happens, it'll be the responsibility of the debt settlement company to handle negotiations with your creditors. If the debt settlement company and creditor reach an agreement, the funds you saved into the designated account will then be used to pay off the creditor and debt relief company.

Most of the time, the amount paid is usually less than the original amount owed to the credit card company.

Are all debt settlement companies trustworthy?

Millions of Americans are struggling with credit card debt. Unfortunately, for this reason, some companies have created fake marketing schemes around the Obama Credit Card Act.

For instance, the name 'relief program' doesn't exist - it's just a marketing tactic by such companies to prey on desperate individuals struggling with the burden of debt.

They make it seem like the 'relief program' is a government-sponsored program to erase your debts, which is false. Instead, their goal is to convince you to enroll in their debt relief program whether you need it or not.

However, just because fraudulent debt settlement companies exist doesn't mean that enrolling in a debt settlement program is not a good idea. It only means that you should do your due diligence when selecting a debt relief company.

Use SoloSuit to respond to a debt collector in 15 minutes and win in court.

How to find a legitimate debt settlement company

Legitimate debt settlement companies exist and can help you get out of debt by negotiating a settlement plan with your creditor. The best way to find a legit debt settlement company is to find one accredited by the American Fair Credit Council (AFCC).

Accredited members of the AFCC are independently audited and follow strict regulations. Moreover, all accredited AFCC members follow the Obama Credit Card Act of 2009, which prohibits collecting upfront fees.

Here are some Fair Trade Commission recommendations to follow when selecting a debt settlement company:

  • Conduct thorough research before settling on a debt settlement company.
  • Don't opt for companies that take upfront fees. A legitimate company won't collect fees until they first reach an agreement with the creditor on how you should settle your debt.
  • If you create a specially designated account, it should be in your name, and a Federal Deposit Insurance Corporation (FDIC) insured account.
  • The debt settlement company should provide you with the full disclosure of their fees and the exact services offered. They must also inform you of the drawbacks of enrolling in their debt relief program.

Following the introduction of the Obama Credit Card debt relief program, you can freely sign up for a credit debt settlement scheme of your choice without fearing that the company will drain your finances after that. However, as noted earlier, signing up for a debt relief program doesn't necessarily mean that the debt collection agency will stop attempting to recover what you owe.

For this reason, if you ever get sued for a debt, you should never ignore the lawsuit. Instead, you can use SoloSuit to file an attorney-approved answer in three easy steps. Click here for more information.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started


Contents