My Real Estate Blog

Weekly Fraud Alert: Federal law prohibits charging consumers until help is provided

New federal laws that went into effect Oct. 27, make it more difficult for debt-relief companies to victimize consumers. The new laws prohibit these companies from charging consumers until they've helped them reduce or change the terms of at least one debt.

Since December 2007, the Better Business Bureau has received more than 6,000 complaints from consumers about debt-relief companies. Typical complaints were that the companies charged fees to consumers burdened with debt, but failed to reduce or eliminate debts.

Reprinted From C.A.R.