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American Financial Services Association

November White Paper on Debt Settlement Companies

November White Paper on Debt Settlement Companies

Our latest white paper is now available. This month’s white paper takes a deeper look into debt settlement companies.

Debt settlement companies promise to reduce consumer debt significantly, but they charge high fees and may not disclose that creditors are not obligated to cooperate. With the rise in non-housing consumer debt in the U.S., they’ve become an attractive alternative to bankruptcy, despite recent legal hurdles for bankruptcy filings. Although they market themselves as saviors, the risks of using these companies can have lasting negative impacts on an individual’s financial well-being. Given the risks to AFSA members and their consumers, AFSA’s white paper examines some of the debt settlement industry’s misleading claims and provides an overview of recent state legislation affecting the industry.

This paper, along with SGA’s other white papers, can be found on the SGA resources section of AFSA’s website.

November 2nd, 2023 by

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