Bill Restructures Debt Management Company Fees

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CARSON CITY, Nev. (AP) - Nevada lawmakers are considering a bill that makes it a little more cost efficient to get out of debt.

The Assembly Commerce and Labor Committee heard the case for SB288 Monday. The proposal is an effort to get Nevada in line with federal regulations for debt management companies.

Currently, companies can charge a set-up fee that pays for the company's efforts at talking with creditors and building a payment plan for the customer. The customer then pays an agreed upon rate to the debt consolidator each month.

This bill prohibits a set-up fee or any payment requirements until terms are reached with at least one of the creditors.

Republican Sen. Greg Brower of Reno says it allows customers to compare the affordability of different plans.

The committee took no action.