More bad news for debt settlement companies. Not long after federal regulators cracked down on some of their more shady practices, states are now getting into the act too. Outgoing Kentucky Attorney General, Jack Conway, released a press memo Friday announcing that the final provisions of Debt Adjuster Regulation HB 166 went into effect as of November 5, 2010. “The regulation completes implementation of HB 166 (2010 Regular Session), which added several new protections for consumers entering into debt-adjusting contracts”, the statement said. Other states are also moving toward tighter control of these companies and many business models will fold as more and more of these regulations take effect.
Consumers need to be cautious when selecting a path toward debt reduction. As stated in my previous post, hiring a professional law firm to negotiate on your behalf is still your safest bet. Don’t fall for these fly-by-night companies operating out of someone’s garage. Look for a tested track record; especially look for testimonials from previous clients. And WATCH OUT, real debt relief is available, but you should go with a firm you can trust.
Then start on your way to debt freedom, it’s a good feeling.