Man says company failed to disclose risks
Having trouble paying your bills? You’re not alone. Many people are struggling with their finances. You may be tempted by ads from companies offering to settle your debts for 50 cents on the dollar, but beware – it could be a trap that will leave you further in debt.
Until recently debt settlement companies make big claims about how they can help you and then collect most or all the fee from you long before they have helped to eliminate your debts. You pay the fee whether your debts are settled or not. A new law bans this practice. Companies now have to earn their fee and actually settle your debt before you pay!
- Consumers Union and the National Consumer Law Center’s Model Debt Settlement Law for States
Debt settlement services hold out the promise of settling debts for less than the full amount owed. To achieve the touted result of settling debts, however, the consumer first has to save enough to fund settlements of the debts. Multiple debts may be involved, and the process may be designed to take several years. While Continue Reading
- Support for Debt Settlement Consumer Protection Act of 2010
September 24, 2010 Re: Support for S. 3264 and H.R. 5387 – Debt Settlement Consumer Protection Act of 2010 Dear Senator/Representative: Our organizations, representing millions of consumers across the United States, strongly support the Debt Settlement Consumer Protection Act of 2010 — S. 3264, sponsored by Senator Charles Schumer; and H.R. 5387 sponsored by Continue Reading
- FTC debt settlement rule summary
Under new regulations adopted by the Federal Trade Commission today, for-profit debt settlement companies will no longer be allowed to collect fees for their services until they have settled some or all of a consumer’s debt. The new regulations will help curb deceptive and abusive practices in debt relief services sold through telemarketing. The FTC’s Continue Reading
- Debt Settlement
Have you been ripped off by a debt settlement company?
- Debt Settlement
Don’t Get Caught in the Debt Settlement Trap
- What you need to Know about Debt Settlement Services
Don’t Get Caught in the Debt Settlement Trap Having trouble paying your bills? You’re not alone. Many people are struggling with their finances. You may be tempted by ads from companies offering to settle your debts for 50 cents on the dollar, but beware – it could be a trap that will leave you further Continue Reading
- Advance fees for debt settlement will be prohibited
New protections go into effect starting October 27
- Debt settlement protections start for consumers
FTC’s new rules will help put an end to debt settlement rip-offs and make sure that consumers get treated
- FTC issues new debt settlement protections
New regulations bar advance fees and other debt settlement industry abuses but don’t cap fees
- Consumer groups support reform of debt settlement industry
Consumer and privacy groups support Senate and House bills to curb debt settlement abuses
- Consumer groups offer debt-strapped consumers advice on getting real relief
Beware of debt settlement trap
- National Mortgage Settlement Update
This week the National Mortgage Settlement Monitor, Joseph A. Smith Jr, released a new report looking at how well Bank of America, Chase, Citi and Wells Fargo are delivering on their promises in the $25 billion settlement entered into in February 2012. The Settlement was entered into to resolve allegations that the banks had foreclosed Continue Reading
- Furloughed Federal Workers: Worried About Your Mortgage?
You are not alone. The Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac have called on lenders to give you a break while you are furloughed during the government shutdown. They are asking for lenders to temporarily postpone mortgage payments for furloughed government employees and contractors, according to a story recently reported in the Continue Reading
- CFPB Takes Action Against Company Processing Illegal Debt Settlement Fees
The Consumer Financial Protection Bureau (CFPB) isn’t letting this week’s government shutdown slow it down! Today, the agency announced that it is suing Meracord, a payment-processing company based in Washington state, for allegedly helping debt settlement companies to collect millions of dollars in illegal upfront fees from consumers. The CFPB is looking to recoup almost Continue Reading
- CFPB Cracks Down on Illegal “Debt Relief” Practices
This week, the CFPB took action against a Florida company offering “debt relief” services – in other words, the promise to negotiate on your behalf to obtain a settlement at less then the original amount you borrowed. The CFPB’s complaint alleges that the company, American Debt Settlement Solutions (ADSS), routinely charged consumers illegal upfront fees Continue Reading
- Most Victims of Bank Wrongdoing Will Get $1000 or Less Under Settlement
Last week the Wall Street Journal reported some sobering news: The vast majority of borrowers being compensated for mortgage related abuses will get $1,000 or less, under a $9.3 billion dollar settlement between the U.S. and banks. If that were not bad enough, yesterday the New York Times reported that homeowners trying to cash their Continue Reading
- Advance Fees For Debt Settlement Will Be Prohibited
On October 27th new rules go into place for debt settlement companies that will help consumers.
- Good News! Finally Reigning in Debt Settlement Companies
The past two weeks we’ve seen two big steps forward toward reigning in debt settlement companies.