Debt Articles Debt Relief Industry Debt Settlement Related

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


READ  ABC 7 Runs Story on Big Crackdown on Debt Relief Companies



About the author

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.

Share a Comment / Leave a Reply

Scroll to Top
%d bloggers like this: