Vortex Debt Group

Six consumer groups say vunerable and desperate Americans are being duped by debt settlement companies.  They support changes being considered in Congress.

In a victory for consumer protection advocates, a major Maryland debt collector has agreed to drop 10,000 lawsuits against people who, in turn, alleged they were pursued illegally by the then-unlicensed company. Midland Funding LLC will also pay the class $200,000 and its lawyers $130,000. Judge Richard D. Bennett preliminarily approved the deal Monday afternoon [...]

New legislation called “The Debt Settlement Consumer Protection Act” was recently introduced by Democratic Senators Schumer (D-NY) and McCaskill (D-MO) in an attempt to protect consumers seeking debt relief from fraudulent business practices.

Debt-settlement companies claim they can reduce borrowers’ debts by negotiating with creditors. These companies have flourished in the downturn.

Debt-settlement companies claim they can reduce borrowers’ debts by negotiating with creditors. These companies have flourished in the downturn.

Robert Linderman wants you to know he isn’t a scammer.

Many debt settlement companies claim they can cut down credit card debt and quickly settle bills, but in reality they can hurt one’s credit score. Money Matters reporter Tara Lynn Wagner filed the following report.

Many debt settlement companies claim they can cut down credit card debt and quickly settle bills, but in reality they can hurt one’s credit score.

Sure, there are some bad apples, Robert Linderman says, but most firms are honorable and help relieve clients’ debt. Still, they charge a percentage regardless of whether the debt is settled or not. Robert Linderman wants you to know he isn’t a scammer.

BBB is warning financially troubled families to beware of misleading debt settlement companies claiming they can easily reduce or eliminate credit card debt. Since late 2007, BBB has received more than 3,500 complaints from individuals, including many who paid hundreds of dollars in upfront fees to debt settlement companies but only fell deeper into debt.