With the amount of credit debt by Americans well into the trillions of dollars, many will turn to debt relief services. Unfortunately, many of these services cause more grief than relief.
Ohio Attorney General Richard Cordray explained the problems many Americans are running into on this week’s segment of “Cordray’s Consumer Solutions,” which appears on WSYX-TV in Columbus.
“During these tough economic times, debt settlement and debt negotiation companies are promising to help consumers eliminate or reduce their debts, but we’re finding that they often fail to deliver on those promises,” Cordray said.
Since January 2007, the Ohio Attorney General's Office has been able to recover more than $320,000 on behalf of consumers.
Last week, Cordray, along with 40 other attorneys general, signed a letter of support for stronger rules that the Federal Trade Commission (FTC) is putting together to strengthen regulation on debt relief operations.
After reviewing comments made by the public, the FTC will most likely make amendments to the current proposal and then vote on whether the proposal shall pass or fail. If passed, this proposal will prevent debt relief companies from charging fees until the promised services are performed, require improved disclosures to consumers and prohibit misrepresentations.
In the meantime, consumers should use the nonprofit certified counseling services that are available, specifically Apprisen Financial Advocates, formally Consumer Credit Counseling Services. Apprisen can be reached at (800) 355-2227.
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