NCLC opposes S-2989, which would legalize certain for-profit debt adjusters. For-profit debt adjustment (also known as debt settlement) is bad for consumers and hurts honest businesses. Bankruptcy attorneys, non-profit credit counselors, and self-help are much better alternatives.
The debt adjustment industry leads consumers to believe that they can negotiate reduced payoffs on unsecured debts. But the truth is, those are hollow promises made to desperate consumers. Debt adjusters canʼt live up to their promises.