California Assemblymember Ted W. Lieu, D-Torrance, has introduced Assembly Bill 350, which calls for regulation of debt settlement companies and would require them to register with the state of California and be subject to oversight by the Department of Corporations.
Currently, debt settlement companies are not regulated under California law, and there is no oversight of a consumer's monies during the debt settlement process. Lieu says his legislation would create a "comprehensive regulatory scheme" and give the Department of Corporations the authority to assess the fees necessary to cover the costs of the program.
"As we grapple with an unprecedented downturn in our economy, many Californians depend on these companies to help alleviate their dire financial situation," says Lieu. "Oversight is imperative to ensure that the public is not being led into further financial trouble."
SOURCE: Office of Assemblymember Ted Lieu