Debt settlement companies will be required to disclose more information to consumers beginning on September 27, according to a report from CNBC. These details include how long it will take for them to settle the debtor's accounts, how much it will cost, and what consequences may result from the process.
The report also noted that customers are typically required to set aside money in a separate account maintained by the debt settlement company. However, the new rules would only allow these to be opened at independent institutions under the consumer's name.
More federal regulations governing the debt settlement industry take effect on October 27, the report said.
Many consumers may be able to find some relief from their financial problems by seeking the help of a debt settlement agency. By doing so, they are enlisting trained, professional negotiators to work on their behalf with lenders to reduce their credit card debt.