Change is coming to how "debt relief" companies do business
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Updated: 3:31 PM Jul 29, 2010
Change is coming to how "debt relief" companies do business
Companies that promise to reduce or eliminate credit card balances and other debt for customers will no longer be allowed to charge an upfront fee.
Posted: 1:58 PM Jul 29, 2010
Reporter: Associated Press
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Thursday, July 29, 2010

NEW YORK (AP) -- Companies that promise to reduce or eliminate credit card balances and other debt for customers will no longer be allowed to charge an upfront fee.

The Federal Trade Commission said Thursday the new rule is intended to crack down on the debt settlement industry, which has flourished in the downturn as borrowers struggle to pay their bills. The rule goes into effect October 27th.

Since the start of the recession, the Better Business Bureau says it received more than 3,500 complaints about debt settlement companies.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
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