Relief from predatory debt settlement companies could be coming

Relief from predatory debt settlement companies could be coming
Relief from predatory debt settlement companies could be coming

We here at Walletpop have warned you before about the practices used by debt settlement companies and how to avoid being taken in by pie-in-the-sky promises of magically-erased debt. Now, finally, the law might be catching up. According to the Center for Responsible Lending, the FTC -- after a lengthy public comment period -- is considering implementing rules that would prohibit these operations from pocketing consumers' money without actually helping them get out of debt.

The FTC would technically invoke an already-on-the-books telemarketing law, which would apply to debt settlement companies due to the fact that phone contact generally takes place between the two parties, and the Center says it expects a final decision by the agency to come next month.