federal trade commision

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.

Every time the mail arrives at CityMama blogger Stefania Pomponi Butler's house, it's a crazy scene. Boxes and boxes of goods from corporations arrive at her door, waiting for her to review them."It's like Christmas every day, every week," said Pomponi Butler, who has recently reviewed a car,...