New rules for debt-settlement companies to help consumers avoid scams

Debt-settlement firms, debt settlement, debt collectors, debt, FTC rules
Debt-settlement firms, debt settlement, debt collectors, debt, FTC rules

Rules from the Federal Trade Commission kick in today that will protect consumers from many of the most common abuses by debt-settlement firms. The new rules prevent these firms from misrepresenting themselves to consumers or making promises that they can't keep.

Since the recession began, debt-settlement firms have ramped up their marketing efforts, bombarding cash-strapped consumers with mailings and advertisements promising to help them erase debts for a fraction of what they owe. As WalletPop has warned, it pays to be wary of these promises.