AmiSight 6/30: Debt Relief Companies Continue to Go Unchecked
- Ami Kassar
- Jun 30
- 1 min read
Despite facing criticism, and even lawsuits, the multibillion-dollar debt relief industry shows no signs of slowing down. In fact, they likely will grow as the major watchdog agency that cracks down on debt relief companies — the federal CFPB — is being dismantled by the Trump administration.
Although banned in many states, debt relief companies set up facade law firms — companies that are law firms in name only, with a tiny number of lawyers nominally serving thousands of clients, Law360 reports. Debt relief businesses also split their companies into different pieces, which helps them stay in technical compliance with the law.
Under the guise of a law firm, the companies use aggressive marketing to enroll clients, encourage them to stop paying their debts and then don’t actually pay the debts, leaving many clients in worse shape.
Between lobbyists and loopholes, the debt relief industry will continue to stash the cash of their clients as debt continues to rise in the United States.
Comments