debt settlement scams

The Federal Trade Commission's telemarketing rules aim to protect consumers from debt-settlement companies that charge upfront fees or overpromise results. But some companies already have found ways to get around those rules, consumer groups warn.

Debt settlement companies can be very useful tools when it comes to reining in an out-of-control debt spiral. Unfortunately, a number of individuals, some criminal and unethical, others just inept and inefficient, have set up companies that end up making a consumer's debt problems worse rather than...

Consumer Law Group, a company that promises consumers it can help get them out of debt, has been sued by North Carolina's attorney general, who wants to stop it from collecting money from customers and issue refunds instead. In the suit, the attorney general alleges that the Boca Raton,...

Next month, debt settlement firms will no longer be able to collect advance fees from consumers seeking to escape their credit card debts. In the meantime, unlucky debtors are reporting losses as the firms begin to go belly up, taking their fees and deposits with them.