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California may move to regulate booming debt settlement industry


ERIKA PAZ
CalMatters
Before the pandemic, Graciela Gomez relied on two jobs to keep up with her expenses. After losing her part-time job at Macy’s in March 2020, she had to choose between paying off her credit cards or paying her rent. She chose the latter.
“I didn’t know who to talk to, who to contact. I was embarrassed,” Gomez said.
An ad for a debt settlement company appeared on her social media feed promising to lower her debt. After following up, she says what she got was a lawsuit from one of her credit card companies in March. She’s still fighting today. ....

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New bill targets California debt settlement companies


I m not interested.
Customers who enroll in a debt settlement plan make a monthly payment to a debt settlement fund. According to Nguyen Orth, debt settlement companies wait until the customer has defaulted on their debts which can sometimes take up to six months before they begin to negotiate with creditors. 
The defaults must occur before the negotiation process can begin, but the debt settlement companies avoid explicitly saying this, Nguyen Orth said. Debt settlement companies like ClearOne Advantage make money by charging customers a percentage of the total debt owed.
In a best case scenario, willing creditors agree to settle the debt for less than the amount owed. After the customer agrees to the new terms, the debt settlement fund will be used to pay the debt.   ....

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Jan Baran comes out of retirement


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FIRST IN PI ‘DEAN OF CAMPAIGN FINANCE’ COMES OUT OF RETIREMENT: The law firm ....

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