By AP
Frankfort, KY – Kentucky Governor Steve Beshear has signed into law a bill aimed at regulating debt-adjusting companies that reach out to homeowners who fall behind on their mortgage payments.
The measure requires debt-adjusting companies to have written and signed contracts that fully disclose all fees and services. The bill sets strict limits on upfront fees that many foreclosure-relief companies can charge for their services.
Beshear says that the measure offers protections against scams that prey upon home-owners looking for easy ways to restructure their mortgages to avoid foreclosure. Attorney General Jack Conway says the bill includes tougher civil penalties against debt adjusters who violate the Consumer Protection Act.