Treasurer seeks regulation of debt settlement

SPRINGFIELD -- The Illinois state treasurer wants to crack down on companies that he accuses of preying on families struggling to pay off huge debts.

Alexi Giannoulias says debt settlement companies often mislead their customers and fail to reduce financial burdens.

He called Monday for legislation requiring the companies to be licensed, limiting the fees they can charge and barring them from advising customers to stop paying credit card bills.

Giannoulias says settlement companies often encourage customers to stop paying their bills and say they'll work out a deal reducing the overall debt. But he says that often fails and the customers end up owing more than ever.

He encourages people to contact legitimate credit counselors who offer budget advice at little or no cost to the customer.