The rise in consumer debt has increased the number of for- profit debt settlement/relief companies but some have engaged in deceptive, abusive and fraudulent practices victimizing consumers and at times financial institutions. Some debt settlement companies have charged fees to enroll customers in deceptive programs or to settle debts but did not provide the services while others misappropriated settlement payments, operated without a license, or facilitated identify theft. 14 There are over 50 publicly-announced investigations and regulatory actions against abusive and/or fraudulent debt settlement companies nationwide. The regulation of the debt settlement industry varies from state to state but.
