The debt settlement industry has come under fire for a number of dubious business practices in recent years. This has prompted a number of states to take action against the industry, including creating strict new guidelines that limit the way that debt settlement companies can operate in some areas of the country. Although there are a number of complaints that have been lodged against the debt settlement industry, one of the most commonly cited criticisms is the fact that many companies in the field charge disproportionately high fees for their services, often while claiming non-profit states. While the fee model used by different firms in the industry varies, some can reach as high as 25% of the total amount owed. Furthermore, because ongoing monthly debt settlement fees are a requirement for many clients, the amount of money that is directed toward the debt itself is often much smaller than originally assumed, creating a downward spiral of late fees, over-the-limit charges, and other problems.