FTC Bans Upfront Fees For Debt Settlement Firms

File this one under credit card scams. FTC bans upfront fees for debt settlement firms.

Here is the FTC Press Release: FTC Issues Final Rule to Protect Consumers in Credit Card Debt

Chapter 13 bankruptcy is often a better solution to solve credit card problems and for many people that frees up funds needed to also solve a mortgage problem. Many credit card consolidation or settlement companies do nothing for a very long time while the customer makes payments to them. They hold money or take it for their fees. Nothing is guaranteed. And they cannot give legal advice on other alternatives like litigating or defending the debt or discharging it or partially or fully repaying it in bankruptcy.