I don’t have the text of the bill yet but HR 5387 was referred to the House Committee on Financial Services on May 25, 2010.
The bill amends the Consumer Credit Protection Act to provide for regulation of debt settlement services.
The sponsor of the bill is Rep. Luis Guiterrez, IV of IL and cosponsors are Rep. Keith Ellison of MN and Rep. Gwen Moore of WI.
Based on the fact the bill is sponsored by Representatives of three states that have taken a tough stance on debt settlement I doubt the bill is going to be debt settlement friendly.
Gutierrez introduces “Debt Settlement Consumer Protection Act” in the House
Rep. Luis V. Gutierrez (D-IL), Chair of the House Subcommittee on Financial Institutions and Consumer Credit, on Tuesday introduced the “Debt Settlement Consumer Protection Act” (H.R. 5387), a bill that would protect consumers from opportunists that claim to provide debt-settlement assistance. H.R. 5387 would amend the Consumer Credit Protection Act to provide for regulation of debt settlement services by, among other things, mandating greater disclosure to consumers, limiting fees that debt settlement firms can charge, and providing additional enforcement power to state and federal officials to crack down on abusive and predatory companies. The Gutierrez bill is a companion to a bill recently introduced by Senator Charles Schumer (D-NY) in the Senate.
“The debt settlement industry practice of misleading and preying on consumers is widespread and simply unconscionable. Companies taking advantage of consumers when they are at their weakest and a lack of sufficient oversight and regulation from the government is a combination that is a recipe for disaster. This bill would help us crack down on these scam artists,” said Rep. Gutierrez (D-IL), whose subcommittee has held hearings on the use of credit information and its impact on consumers and plans to address consumer protection issues through comprehensive legislation later this year.