In our last blog post, we discussed the increasing number of debt settlement companies choosing to skirt the new regulations provided by the Federal Trade Commission (FTC) in September. Today, we will look at how these companies are bypassing the rules and taking advantage of unsuspecting consumers seeking debt relief services.
Debt settlement companies do not have the best reputations. Horror stories of consumers paying thousands of dollars while receiving no benefit from these companies run rampant. Still, progress was made in September, with the Federal Trade Commission (FTC) imposing new regulations on debt relief and consolidation companies. These rules sought to protect vulnerable consumers looking to avoid bankruptcy and relieve their mounting credit card debt.