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: California Credit Law BlogFTC Rules Will Put Debt Settlement Companies Out of Business
By Kemnitzer, Anderson, Barron, Ogilvie & Brewer
By October 2010, new FTC rules will prohibit debt settlement companies from collecting fees on the promise they will reduce or settle a consumer debts. The rules are necessary because the debt settlement companies falsely advertise they can drastically reduce consumers' debts by negotiating with the consumer's creditors. The companies demand and get thousands of dollars in fees even though they do not accomplish anything.
Consumers often pay the fees and end up in a worse position than when they started. The new rules should put these companies out of business. Query--why did it take the FTC so long to make these rules?
Full post as published by California Credit Law Blog on August 03, 2010 (boomark / email).
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