White Paper | Debt Settlement Companies
AFSA’s April State Government Affairs white paper is now available. This month’s white paper highlights the rapid growth of non-housing consumer debt, with debt settlement companies emerging as a popular but often misleading solution for struggling consumers. Despite claims of reducing debt significantly, these companies typically charge high fees, harm credit scores, and offer low success rates, leading to further financial hardship for many consumers. It includes an overview of current legislative proposals relating to debt settlement services. The information in this paper reflects the research conducted at the time but may change as the situation is constantly evolving.
This paper, along with SGA’s other white papers, can be found on the SGA resources section of AFSA’s website.
April 3rd, 2025
