Federal Trade Commission Hearing on Debt Settlement

On September 25, 2008 the Federal Trade Commission held its first hearing on the debt settlement industry. Somewhat akin to speakeasys during prohibition, debt settlement companies provide a service that consumers want no matter how many consumer advocates say it’s bad or you or how many regulations state and federal consumer protection agencies throw in their path.

Spotty History

There have been many prosecutions surrounding the debt settlement industry. Some of those cases were well deserved actions where consumer money was stolen or promised services were never provided. Despite these prosecutions, the debt settlement industry had continued to grow due in large part because consumers want to avoid bankruptcy and cannot manage the often impossibly hostile collection process when they go into default.