Are there any laws governing debt settlement?

Yes, there are laws governing debt settlement in California. The California Consumer Legal Remedies Act (CCLRA) is one of the most important laws governing debt settlement. This law protects consumers by regulating the practices of companies offering debt settlement services. Under the CCLRA, debt settlement companies are required to be licensed by the state, and must provide disclosures to the consumer regarding the services they provide. The law also states that debt settlement companies cannot collect payment until an agreement is reached and signed by all parties. Additionally, the CCLRA prohibits companies from making false or misleading statements about their services. In addition to the CCLRA, there are other laws that govern debt settlement in California. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from debt collectors and from unfair practices. It requires debt collectors to respect the rights of consumers, and prohibits them from threatening, harassing, or attempting to deceive consumers about their debt. Finally, California has its own fair debt collection practices law which includes many of the same provisions as the federal law. This law also prohibits debt collectors from contacting consumers at work, or engaging in other unfair or deceptive practices. In conclusion, California has many laws that regulate debt settlement services, and it is important for consumers to be aware of these laws before entering into a debt settlement agreement with a company.

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Are there any laws governing debt settlement?

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