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Released: August 15, 2010

How FTC debt settlement rules protect you

Source: Kathy Kristof, Los Angeles Times (Free Registration)

The advertisements for debt settlement are nearly irresistible to the overextended. They make the process sound almost painless; some even promise that government programs will stomp down debts.

Sounds great, except in reality debt settlement can be fraught with difficulties and sour consequences, and there’s no magical government program to make it easier, say experts in the field. In fact, debt-settlement companies have been charged in more than 250 federal and state false-advertising cases in the last several years. The companies have also been the source of thousands of consumer complaints.

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