TransUnion found settlement enrollees who were still current when they enrolled fell 96 points, 645 to 549, measured six months before to six months after. Here’s what it leaves out.
A debt settlement company telling you to pay a fee before they settle anything isn’t industry standard — it’s a federal violation. The FTC’s Telemarketing Sales Rule has banned advance fees since 2010.
A bankruptcy judge traced every dollar through an attorney-model debt settlement firm’s own database. What she found should worry anyone enrolled in a similar program.
Debt settlement fees are federally regulated — the FTC advance fee ban means companies cannot charge you before a debt is settled and you’ve made your first payment. Here’s what’s legal, what isn’t, and what to do if you’ve been overcharged.
Debt settlement companies claimed 85–100% success rates to undercover government investigators. Federal and state agencies documented actual rates often in the single digits. Here is what the research shows before you enroll.
Quick Answer: Debt settlement is legitimate but risky, allowing people to pay 40-60% of what they owe to creditors. However, it requires stopping payments for 90-180 days, damages credit scores, and often involves collection calls and potential legal action before any settlement occurs.Imagine this: You’re sipping coffee when your phone rings. Unknown number. You ignore …
Quick Answer: Debt settlement is legitimate but many companies offering it are scams that take upfront fees and disappear. Settlement works best when borrowers have 50% of their debt available as cash for lump-sum payments to negotiate with creditors directly.My No B.S. Guide to What Works and What’s a ScamDebt settlement is like buying a …
Quick Answer: When settlement companies overcharge beyond agreed fees, consumers should immediately stop automatic debits, document all charges, and file complaints with state attorneys general and the CFPB. This reader paid over $7,000 in alleged “setup fees” above the 15% agreement and faces $3,000+ in additional charges, suggesting potential violation of debt settlement regulations.I agreed …
Quick Answer: GreenShield FS’s 15% fee structure may violate federal regulations requiring debt settlement companies to charge only after successfully settling each debt, not upfront. Consumers should demand contingency-based contracts and walk away from any company charging advance fees based on enrolled debt amounts.“Dear Steve,I have a lot of unsecured credit card debt (around $70,000).I …
Quick Answer: Illinois legislation backed by Attorney General Lisa Madigan would ban upfront fees for debt settlement companies and cap payments at 5% of actual debt savings rather than enrolled debt percentages. The bill also requires licensing, prohibits advising payment cessation to creditors, and allows contract cancellation with prompt fee refunds. Illinois Attorney General Lisa …
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