Consumers Should Work Directly with Credit Card Companies Rather Than Debt Settlement Companies, Says CFPB

In a blog post published on April 3, 2019, the Consumer Financial Protection Bureau (Bureau) encouraged consumers to work directly with credit card companies rather than with debt settlement companies.

The benefit of working directly with credit card companies is that it saves consumers money, according to the Bureau. Credit card companies usually give the same discounts to consumers as they do to debt settlement companies; the difference is that debt settlement companies will charge consumers for their service. If consumers contact credit card companies directly, they can get the same result without having to pay an intermediary.

In addition paying a debt settlement service fee, the Bureau notes other pitfalls of working with debt settlement companies. For example:

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