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Debt settlement association urges Quinn to veto bill
By Edith Barlow on Jun 9th, 2010
An association that represents debt settlement companies recently urged the governor of Illinois to not sign a bill adding additional restrictions to that industry.
The Association for Settlement Companies noted that the bill passed by the state legislature institutes fee restrictions that would make it impossible for firms to provide their services. This could put them out of business, while also reducing debt relief options for consumers.
The legislation, which was championed by Illinois Attorney General Lisa Madigan, was passed on to Governor Pat Quinn's desk and is awaiting his decision.
"He can rectify the wrongs of the Illinois General Assembly by vetoing this bill," David Leuthold, TASC executive director, said.
Through the legislation, debt settlement companies would only be allowed to charge a one-time enrollment fee when starting with a client. This eliminates many of the up-front fees that led to complaints about the industry, as consumers may have been charged by unscrupulous companies without seeing any resulting services.
Furthermore, any fees collected one debt is settled could be no more than 15 percent of the total that consumers managed to save through debt settlement.
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