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Debt Settlement Legislation to Prohibit Up-Front or Monthly Fees and Cap Fees at 5%

Illinois Attorney General Lisa Madigan is backing legislation to ban debt-settlement companies from charging upfront or monthly fees and that caps payments to firms promising to reduce credit card debt.

The legislation would cap fees at 5 percent of the savings resulting from settling a debt, rather than a percentage of debt enrolled. It also would allow cancellation of a debt-settlement contract at any time and require prompt refund of fees; prohibit companies from advising consumers to stop payments to creditors; ban deceptive marketing practices and require companies to be licensed through the Illinois Department of Financial and Professional Regulation. The bill is sponsored by Rep. Marlow H. Colvin (D-Chicago). – Source

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Steve

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READ  Debt Settlement Companies Watch Out. Debt Settlement Talks Getting Serious Now About Banning Up-Front Fees.



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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • It would be GREAT to have this actually pass. This may in itself cease the CCDN scam…at least I’d hope that to be the case.

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