The Federal Trade Commission announced a new rule to protect consumers from predatory practices of the Debt Settlement Industry.
The new rule covers the following provisions:
• For profit debt relief companies that sell products over the phone may not charge a fee before settling a debt for a consumer.
• Debt relief companies will be required to make specific disclosures to consumers.
• They will be prohibited from making misrepresentations
• The Telemarketing Sales Rule will be extended to cover calls consumers make to these firms in response to debt relief advertising.
This is excellent news for consumers who have been at the mercy of these companies who make false promises, fail to disclose what will happen when the consumer stops paying their debts as instructed and pockets hundreds or thousands of the consumer’s dollars in fees before every settling a debt.
American Financial Solutions applauds this new rule and is proud to have been a part of the Working Group of NFCC and AICCCA agencies that provided feedback to the FTC regarding the predatory practices of the Debt Settlement Industry. For more Info Please Visit: www.myfinancialgoals.org.
