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Press Releases

March 7, 2011
Oakland, Calif.--Californians struggling to overcome heavy debt will have greater protections and greater success if a bill by State Sen. Majority Leader Ellen Corbett (D-San Leandro) becomes law. Debt settlement companies advertise prominently on radio and television that they will reduce debts for pennies on the dollar, aiming to attract consumers dealing with overwhelming debt loads. Yet they typically collect large sums of their clients' money up-front, have a track record of settling very little debt, and often leave clients worse off than they were before. "Many Californians are...
July 29, 2010
American families won a major consumer victory today when the Federal Trade Commission issued a new rule barring debt relief firms from collecting up-front fees from customers before any service is provided. We commend the FTC commissioners for exercising their authority to lay down common-sense rules in the debt settlement arena, where unfair and deceptive practices are rampant. The new rule applies to any debt relief firm that either receives a call from or makes a call to a customer. It prohibits these firms from collecting fees up front before they have provided any promised service...