From USA TODAY:
The ads are ubiquitous, and for consumers awash in debt, nearly impossible to ignore: Reduce your credit card bills 50%! Avoid bankruptcy! The relief is real!
Behind the ads is a fast-growing industry that barely existed a decade ago. Debt-settlement companies claim they can significantly reduce borrowers’ debts by negotiating directly with creditors. Unlike most businesses, these companies have flourished during the economic downturn.
But a growing group of lawmakers, regulators and consumer advocates say these companies exploit desperate borrowers, often leaving them deeper in debt. The Federal Trade Commission wants to restrict fees the companies charge. Sen. Charles Schumer , D-N.Y., has introduced legislation that would bar debt-settlement companies from collecting…
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