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Lawmakers Want Debt Consolidation Changes
You've seen the ads -- "call now and we'll help you get out of debt." But some Illinois lawmakers say those debt-settlement agencies too often only get you into even more trouble.

A bill sponsored by State Rep. Marlow Colvin (D-Chicago) would put restrictions on such companies. They include reducing up-front charges to $50 and tying future fees to the amount of debt which is actually settled.

Supporting the bill, State Rep. Bill Black (R-Danville) says he has seen constituents pay $3,000 to start, then be told to simply quit paying their bills.

State Rep. Ed Sullivan (R-Mundelein) says while he is not in favor of companies abusing troubled clients, the bill fundamentally changes their business model. He says if Attorney General Lisa Madigan had her way, the debt-consolidation agencies would be outlawed entirely.

H.B. 4781 has passed the House, 106-9.

(Illinois Radio Network)
04 09 10 by Newsroom
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