Missouri lawmaker seeks changes in debt company laws

Monday, April 4, 2011 | 7:23 a.m. CDT; updated 10:32 a.m. CDT, Monday, April 4, 2011

JEFFERSON CITY — Companies that offer to help people reduce their debt would have to follow several new rules under legislation before the Missouri Senate.

The measure, sponsored by St. Louis County Republican John Lamping, is to go before a Senate finance panel Monday.

Under that bill, debt reduction companies would be required to tell customers how long it will take to pare down their balance. They would also have to explain whether using a debt reduction service would hurt the person's credit.

The legislation would change when debt reduction companies receive payment. The customer would have to make at least one payment toward erasing that debt before the company would get paid.




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