Debt Settlement & Relief Services Archives

Comments on the NCCUSL Uniform Debt-Management Service Act

March 1, 2006

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…

Comments on the proposed revisions to the Uniform Debt-Management Services Act (UDMSA)

March 18, 2011

The comments were submitted in response to the National Conference of Commissioners on Uniform State Laws’ recent request for comments on the proposed revisions to the Uniform Debt-Management Services Act (UDMSA). NCLC remains deeply concerned that the UDMSA does not adequately protect consumers from abusive debt settlement and debt management practices. We previously explained our…

Letter in opposition to NJ S-S2989; Debt Settlement Legalization Bill

December 19, 2022

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…

An Investigation of Debt Settlement Companies: An Unsettling Business for Consumers

March 9, 2005

Many states as well as the National Conference of Commissions on Uniform State Laws (NCCUSL) have attempted to regulate debt settlement through laws that mainly target debt management practices. In fact, debt management and debt settlement are very different businesses. By including debt settlement in laws that focus on debt management, policymakers are helping to…

Need Help With Debts? Don't Get Burned by Scammers - Know the Facts About Debt Relief

March 29, 2018

Debt relief is the generic name for different ways you can manage your bills. This fact sheet covers different types of debt relief and what you should watch out for. Debt relief scammers often target people in financial distress, such as those affected by a natural disaster. So people looking for assistance after a hurricane,…

Need Help with Debts? Don’t Get Burned by Scammers—Know the Facts About Debt Relief!

March 29, 2018

This fact sheet covers different types of debt relief and what consumers should watch out for.

Asking the Wrong Question: A Critique of the Debt Settlement Industry's Data Analysis

October 1, 2020

Every few years, since 2012, the debt settlement industry has released a report asserting its worth to consumers. The reports are commissioned by the American Fair Credit Council (AFCC), a trade association representing the debt settlement industry.

Debt & Bankruptcy

How to File a Complaint with the CFPB About Debt Settlement or Other Debt Relief Services

September 8, 2020

Anyone can file a complaint: You can file one about your own problem A lawyer, housing counselor, social worker or anyone else can file a complaint fora client A family member or friend can file a complaint for someone else

Statement Regarding CFPB Settlement with Nation’s Largest Debt Relief Company

July 9, 2019

FOR IMMEDIATE RELEASE: July 9, 2019 Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced the settlement of a lawsuit it had brought against Freedom Debt Relief, the nation’s largest debt settlement company. According to the CFPB, the company agreed to pay $20 million in restitution to affected consumers and a $5 million…

Advocates Applaud CFPB for Suing Firms Accused of Illegally Taking Upfront Fees for Credit Repair Services

May 3, 2019

Advocates Applaud CFPB for Suing Firms Accused of Illegally Taking Upfront Fees for Credit Repair Services WASHINGTON– Advocates at the National Consumer Law Center applaud the Consumer Financial Protection Bureau’s (CFPB) legal action against Lexington Law and several internet-based marketers (PGX Holdings Inc. and subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC, and CreditRepair.com…

GAO Testimony Regarding Debt Settlement: Fraudulent, Abusive, and Deceptive Practices Pose Risk to Consumers

April 22, 2010

GAO’s investigation found that some debt settlement companies engage in fraudulent, deceptive, and abusive practices that pose a risk to consumers.

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