Garodnick Calls For An End to Predatory Debt Settlement
In the first hearing of the Consumer Affairs Committee under its new chair, Council Member Garodnick, the committee examined debt settlement companies – for-profit firms that are supposed to work with creditors to ease consumer debt burdens.
These companies often do not deliver on their claims to assist with debts and fees, and frequently cause greater financial distress for the already burdened consumer by charging them recurring fees before even beginning their work. “Predatory, so-called ‘debt-settlement’ companies go after consumers when they’re most vulnerable, make false promises, and cause further financial troubles. This is unacceptable – it’s time to put an end to this practice in New York," said Council Member Garodnick.