Consumer Watch: New Rules Go Into Affect For Debt Settlement Services

Thursday, October 28th 2010, 4:16 am
By: News 9

Amanda Taylor, News 9

OKLAHOMA CITY -- The Federal Trade Commission set new rules for debt-relief services starting Wednesday.

The new protections state that before a consumer pays a debt settlement service any fees, the company must settle or change the terms of at least one of their debts and the creditor must be paid first.

Also before signing anything, the company needs to disclose details of the plan and make sure the consumer is aware of any potential pitfalls.

Consumers who need help managing or negotiating their debt should find a local non-profit group to help. The groups will still charge, but it will be a fraction of what it would be if at a debt settlement company.

Find out where to go if you need help with debt