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Stricter Regulations for IL Debt Settlement Companies
A new law requires debt settlement companies to register with the state and to lower initial fees charged to consumers.

The Debt Settlement Consumer Protection Act was introduced after Illinois Attorney General Lisa Madigan said her office received a massive amount of phone calls about being ripped off by companies that promised to work with consumer's creditors and promise to eliminate a portion of that consumer's debt.

"We have seen an onslaught of commercial advertisements telling us that we can pay off out debt, 50% off, 60% off, as much as 70% off, and these commercials are so enticing."

Many of those companies were charging large portions of that money up front.

The bill now requires companies to register with the Illinois Department of Financial and Professional Regulation and they can only charge a $50 fee up front as well as a cap rate of 15 percent of the savings made by the consumer.

(Illinois Radio Network)
09 23 10 by Newsroom
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