CFPB reports on debt settlement, credit counseling

The Consumer Financial Protection Bureau released a report documenting changes in how consumers have used debt settlement and credit counseling for unsecured debt. The report said nearly one in 13 consumers with a credit record had at least one account reported by creditors as settled or payments managed by a credit counseling agency from 2007 through 2019. Debt settlement and credit counseling became less common after the Great Recession, but settlements are on the rise.