Thank you, I absolutely agree. One of the ones I talked to even stated they would have a lawyer for you if you had to go to court for any reason, then in the contract (page 60+) they flat out state "We will not provide lawyers" it's sickening. Then they hire some standby firm you pay an extra $40 a month for so by the end of it all you are actually paying more than you would have if you just buckled down. I really hope a firm opens that looks at people's story and not their number. If a person has been making payments for years without missing something, why shouldn't a company say "They made it this far, lets give them a 10% and buy their debt out, they seem to be handling it."

I'll bite. What the heck is up with these con-artist companies offering you a consolidation then trying to get you to join some "Arrears" or "Default on debt" scheme. Then they flat out lie "oh well, you will take a small hit to your credit, but it will settle quickly and we can save you thousands" knowing full well that hit isn't small. Yeah I can default, let it go to a loan servicer and pay even lower than what you are offering to get me out of debt for. The point is NOT to default ya idjits. I have no doubt they are settling debts for half the cost then giving clients a 2k savings all while destroying their credit. I even convinced one to send me a recording of the call as I baited them through trying to sell me on it for a half hour. Half tempted to turn them over to CFPB, the stuff this guy was spouting to get me to bite was insane.

When did this model start and how is it not illegal?

Side Note: I only know as much about credit as I do from being in a home refi operation decades back. I still don't know that much.