One of the nation’s largest consumer debt-buying companies has reached a settlement with the Federal Trade Commission and agreed to pay $2.5 million over allegedly deceptive debt collection practices, including threatening to sue consumers whose debt was too old to be legally enforceable.

When talk show host and former broker Suze Orman started promoting a prepaid debit card with her name on it, the move ended up sparking a debate about the benefits and disadvantages of prepaid debt cards versus checking accounts. While Checking accounts often offer free debit cards, prepaid debit cards often charge users fewer fees while encouraging savings and preventing users from spending money they don’t have.

A Louisiana debt relief company that offered to repair consumers’ credit card debt histories has been hit with a cease-and-desist order by the state’s Attorney General for allegedly failing to provide a necessary $100,000 bond required under state law.

A U.S. district court has agreed with the Federal Trade Commission’s request to freeze the assets of Premier Nationwide Corporation, an Arizona-based telemarketing operation that allegedly charged consumers illegal advance fees for bogus credit card debt relief services and then refused to provide promised refunds when consumers requested them.

The Consumer Law Group, a bogus Florida debt relief law firm that falsely promised it could reduce consumers’ debts by more than half, has been banned from providing debt relief services in North Carolina and forced to give up $1.2 million in charges and refunds.

Talk show host and former broker Suze Orman has been called out over her promotion of a “credit building” prepaid debt card with her name on it. While the Approved Card charges users a variety of fees and does nothing to build users’ credit histories, editors for Oprah’s magazine let her write her own financial advice column blatantly promoting her product at length without providing context for Orman’s motivations.

There are plenty of reputable debt relief companies out there that can help you get a handle on your debt and help you become debt-free as soon as possible. But there are also some debt relief scams out there that prey on unwitting victims and take their money without providing any debt help, often leaving consumers worse off than before. Here are three quick tips for spotting and avoiding debt relief scams.

Realtors and tax advisors are urging homeowners who are underwater or facing foreclosure to consider a short sale to take advantage of the expiring Mortgage Forgiveness Debt Relief Act, which allows homeowners to avoid paying income taxes on the amount of canceled or forgiven debt from foreclosures, short sales, refinances, and mortgage debt relief services that result in principal forgiveness.

Talk show host and former broker Suze Orman is promoting a prepaid debit card with her name on it that will charge you at least $36 a year but does nothing to build your credit history. Although Orman tells consumers “You can bank on it,” several financial experts, including one who referred to Orman’s card as the “cream of the crap,” have publically slammed the card and warned consumers to avoid it.

Debt from home mortgage loans and credit cards can be overwhelming if you’ve been laid off or are struggling to make ends meet. Sometimes people can get so overwhelmed by mortgage and credit card debt that they need to consult a professional who can provide debt relief services. Unfortunately, like in all businesses, some of [...]