Housing Mortgages Information

New Laws Protect Distressed Consumers from Scam Artists

January 29, 2010 – 1:05 pm

Posted To: Community Commentary

I originally published this story on SuretyBonds.com , but feel the current environment justifies spreading the word. Consumer complaints about debt-assistance companies have spawned tougher new laws designed to crack down on scam artists. In many states, these new laws require companies to carry surety bonds to enable repayment if they abscond with customers’ money. In other cases, recent lawsuits against shady operators may inspire even stricter laws. Here’s a quick look at several industry niches related to consumer debt where states have recently passed new rules: Credit counselors : In Louisiana, three out-of-state credit-repair companies were hit with “cease and desist” orders from the state attorney general after failing to post a $100,000 surety bond with the...(read more)