Debt Settlement Companies
Often we see that when an individual is sued by their creditor(s), they have previously contracted with an out-of-state debt settlement company. Debt Settlement Companies are heavily regulated by state and federal laws. Government entities such as the FTC and The Consumer Financial Protection Bureau (CFPB) also regulate these companies to make sure they comply with state and federal laws and government regulations.
In Ohio, companies that practice debt settlement services must be registered to conduct such business in the State of Ohio. Often, many out of state companies fail to register with the State of Ohio. Additionally, under Ohio law, they are not permitted to charge advanced fees for their services and the amount of fees they can charge is limited. To circumvent these fee limitations, companies will often join with an attorney or law firm. While some law firms provide debt settlement services in compliance with state and federal regulations, there are many law firms that will merely lend their name to a debt settlement company; however, the debt settlement company performs the actual services and an attorney never works on an individual’s file.
Due to the increase in federal laws and regulations, debt settlement companies continue to attempt to find ways to circumvent the laws in order to continue their business and profit off of individuals who are struggling with debt and seeking help. Our firm is familiar with these companies and their practices. We have filed suits against companies that are located throughout the United States. If you have contracted with a debt settlement company, contact us immediately. If a company is violating state and federal laws, you may be entitled to monetary damages.