© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Granholm to propose debt settlement regulations

By Rick Pluta, Michigan Public Radio Network


LANSING, MI – Governor Granholm says she will ask the Legislature to regulate a growing industry in Michigan that targets consumers who have fallen behind on their bills.

The governor says the state is getting a growing number of complaints about debt settlement companies. The companies typically charge big upfront fees and promise to help their customers quickly get out of debt by paying off their bills at a reduced rate. But the governor says those promises are often not kept, and consumers wind up with worse credit without shaking off debt collectors.

"As consumer credit card debt grows and overall debt skyrockets, the number of unregulated and financially dangerous debt settlement companies is increasing dramatically," Granholm says.

The governor says she wants debt settlement companies to be licensed. She says, until then, consumers looking for help should turn to state-licensed debt managers.

Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!