On Thursday May 7, 2009 New York Attorney General Andrew Cuomo issued subpoenas to 14 debt settlement companies and a law firm. Cuomo is part of a multistate effort to regulate debt settlement companies, which Cuomo says are “offering consumers false hope, charging tremendous fees and leaving them in a worse financial situation.” (more…)
Credit and Debt Blog
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Archive for the ‘Debt Settlement’ Category
What is Debt Forgiveness?
When examining debt relief options, clearly forgiveness of debt can be an appealing idea. Imagine getting all or a portion of your debt forgiven rather than having to deal with debt collectors and legal action! If it sounds too good to be true, understand that there are many consequences of debt forgiveness that could leave you in worse shape. (more…)
Proposed Limits on Debt Settlement Companies Too Lenient
Debt settlement companies have thrived on rising defaults on all sorts of consumer debt, especially credit cards and unsecured personal loans. Their profits have been through the roof even though the vast majority of their clients never successfully settle their debts. Newly proposed legislative limits still allow sky-high fees and almost no accountability. (more…)
Debt Settlement Companies Booming
Debt settlement has become a big business as the number of credit card defaults continues to increase. Debt settlement companies prey on desperate consumers that are tired of harrassing phone calls and threatening letters. What debtors don’t realize is that they end up creating a whole new set of problems when they sign up for debt settlement instead of getting help from a reputable credit counseling organization. (more…)
Debt Settlement Association Suing Pennsylvania
The Department of Banking in Pennsylvania is facing opposition to the recent legislation in Pennsylvania that requires debt servicing firms to be licensed in order to provide services to Pennsylvania residents. A lawsuit has been filed by The Association of Settlement Companies (TASC) and two of its members operating in Pennsylvania that challenges the new law. (more…)
Debt Settlement Increases Income Taxes
Debt settlement might sound like the best option for you. Besides, many companies “claim” to be able to help you settle for half of what you owe. What they don’t tell you is that after paying their fees and increased taxes, you barely save anything. (more…)
Debt Settlement Scams Difficult to Avoid
The numbers of rogue debt settlement companies are growing, and it is becoming easy to see why. With inadequate regulation of debt settlement companies and the vulnerability of indebted customers, debt settlement companies are springing up just about everywhere. (more…)
Major Creditors Cold to Debt Settlement Companies
Major credit card companies are increasingly unwilling to cooperate with debt settlement companies. This reflects a growing resentment for the predatory practices of many debt settlement companies as well as the high cost that debtors pay. (more…)
Debt Settlement Claims Overstated
Debt settlement companies often state that they can settle your debts for pennies on the dollar or even up to less than half of what you owe. They also tend to overstate the actual amount of work that they do on your behalf. (more…)
FTC Examines Debt Settlement Problem
The Federal Trade Commission has scheduled a workshop to examine the proliferation of debt settlement companies that promise debt relief but rarely help consumers improve their financial situation. The FTC wants to see what impact these for-profit companies have on debtors and on the businesses they owe money to. (more…)
