The National Consumer Law Center, on behalf of its low-income consumer clients, and Consumer Federation of America oppose the NCCUSL Uniform Debt Management Services Act unless provisions regulating debt settlement services are removed or dramatically amended.
Our key concerns are:
- The Act regulates debt settlement as a valid type of debt management service. We believe that this legitimizes a business that is very dangerous for consumers.
- The Act gives states the option of allowing for-profit firms to offer debt management and debt settlement services, undermining recent steps by the I.R.S and some states to root out abuses in the credit counseling industry.