WHAT YOU SHOULD KNOW ABOUT THE MARKET
• Companies promising to reduce or eliminate credit card balances and other debt for customers no longer will be allowed to charge an up-front fee. The Federal Trade Commission (FTC) recently announced new restrictions to crack down on the debt settlement industry. Beginning Oct. 27, debt settlement companies only will be able to charge a fee once a customer’s debt has been reduced, settled, or renegotiated.
• The new FTC regulations also require debt settlement companies to disclose to customers how long it will take to get results, how much it will cost, and any negative consequences that could arise from the process.