The Federal Trade Commission has proposed new rules for debt settlement companies. (Thanks to my friend, Dallas personal injury attorney Robert Kraft for sharing this.) Among the rules being proposed:
1. New fee can be collected until the services are performed; and
2. Improved disclosures, including the time it takes to perform the services.
This is great. This really is important for consumers. Debt settlement companies promise the world and collect huge fees to do it. Then, when the time comes for service, they often end up lacking. Of course, their contract makes it almost impossible to sue them for failing to perform. So, consumers get left holding the bag, out the fee and sued by the creditors who do not deal with debt settlement companies.
If you are behind in your debt, email me for my report on what you can do to protect your credit. Calling a debt settlement company is the last thing you should do and you should know your rights before you call them.