Wednesday, September 01, 2010

New FTC rule regarding debt settlement firms may actually jeopardize consumers

Debt settlement companies, as opposed to legitimate debt collection companies, are certainly getting bad press these days, according to a report reprinted on AOL this morning from Daily Finance, by Charles Wallace, “Consumers Face Huge Losses with Debt Settlement Firms”, link (web rul) here.

The Federal Trade Commission adopted a new rule July 28 to stop debt settlement companies from collecting fees before settling debts, but the upshot could be that many go out of business, having taken consumers’ money.

The FTC has a related story today about Clean Credit Report Services, Inc.,, about an agreement to get it from making false claims, link (website url) here.

The FTC also has a July 2010 report, “Protecting Consumers in Debt Collection Litigation and Arbitration”, PDF link here.

No comments: