Borrower Nightmares: Small town teacher seeks help for big debt, ends up in bankruptcy

By Shirley Gao

Illinois, W.Virginia sue debt settlement companies for using loophole to charge high up-front fees

Excerpts from this story referencing "debt settlement services":

"… s who have found themselves even deeper in debt after seeking help through debt settlement services, an industry the new Consumer Financial Protection Bureau aims to regulate …"

"… sion amended its telemarketing regulations to prohibit companies that sell debt settlement services over the telephone from collecting fees until a client’s debt is settled …"

"… a client’s debt is settled. However, the rules allow lawyers who perform debt settlement services to collect legal fees up front from consumers.Morgan Drexen has also taken …"

"… plaint states. “In reality, Morgan Drexen provides all of the meaningful debt settlement services while lawyers it recruits merely ‘rent’ their bar licenses and company …"