Yeah, I would love for more regulation and shutting down of these firms via the CFPB. It feels that most companies just try to sell you on the default on debt scheme, but there needs to be some accountability on the quality of the calls. I've heard times when companies don't even tell you that you could get sued while in the program.

I believe the model started in the early 2000's, and there were a lot more sketchy debt-relief companies that would take fees before any debt was settled, but thankfully, they introduced Dodd-Frank that basically made it illegal to charge upfront fees. Here's a CFPB post about them taking action to shut them down: https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-to-stop-florida-company-from-engaging-in-illegal-debt-relief-practices/

What we found when we started is that there may be value ONLY if you face financial hardship and CANNOT pay the debt in full, not something you utilize just to get off the hook easily.

Why is it not illegal? I really do wish that at least some of these companies were banned at some point or there's much tougher regulation as I saw recently one instance where it appears the debt relief companies settled paid like $120 to creditors and then extracted like $2000 in fees from a hospice nurse that was getting payday loans to cover the monthly payment to the debt relief company. It was heartbreaking and made me so angry.