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

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.