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. … more
