Thinking of using a debt settlement firm? Think again. These services don’t help you as much as you think.
Many of these firms are not helping as much as their subscribers think—sometimes at least half of what the customers pay goes to administrative fees—money that is never paid on the customer’s behalf.
The Minnesota Legislature, at the behest of consumer advocate groups, recently passed legislation that regulates what debt settlement firms have to disclose to consumers. The new law also regulates what these companies can charge consumers. But do not let the legislation fool you—these firms are not your best option to get out of debt.
New law tightens rules for debt firms | Star Tribune
(photo: Andres Rueda)
If you are in Minnesota, contact The Glover Law Firm, LLC, for a free case evaluation. In any other state, you can find a consumer rights lawyer using the National Association of Consumer Advocates lawyer database.
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Isn’t the article you’ve linked to about *debt settlement* companies, not *debt management* companies? I know some of the companies offering debt management plans are also shady, but there seem to be some decent ones out there, whereas the debt settlement companies are trouble.
Point taken; post updated.