debt-settlement-regulations
More and more regulation coming down from individual states on the Debt Settlement industry. Many debt-settlement firms offer legitimate financial services but a lack of regulation has made it difficult for people to sort the good from the bad. The fast rise of firms has prompted lawsuits and pressed states to draft laws to protect their most financially vulnerable residents.
The Maryland General Assembly is considering a bill that would cap the firms’ fees, which are often paid before they make a single call to a creditor. In one year, complaints about such companies to the state Attorney General’s Office have quadrupled to 121. (“Washington Post”)
Debt settlement companies cater to those who got caught up in the era of easy credit only to find themselves overwhelmed. When changes in federal laws a few years ago made it more difficult to declare bankruptcy, a new class of consumers emerged with massive debt and no way out.