New Federal Rules Governing Debt Management Take Effect Americans struggling with debt continue to turn to debt relief companies rather than bankruptcy for solutions. Last month new regulations in the form of the Telemarketing Sales Rule or TSR were introduced by the Federal Trade Commission designed to crack down on large upfront fees, but industry experts warn that many debt management and debt settlement companies will not comply with the new rules.
Fort Lauderdale, FL (Vocus/PRWEB) November 16, 2010
Americans struggling with debt continue to turn to debt relief companies rather than bankruptcy for solutions. Last month new regulations in the form of the Telemarketing Sales Rule or TSR were introduced by the Federal Trade Commission designed to crack down on large upfront fees, but industry experts warn that many debt management and debt settlement companies will not comply with the new rules.
“Other criteria to use when evaluating a reputable company should include checking if their credit counselors are certified and that the organization itself is certified with a recognized organization such as the International Organization for Standardization (ISO); making sure the agency is licensed; selecting a company with a long history; avoiding high upfront or monthly fees; and of course getting everything in writing,” adds Stark.
The new regulations requiring disclosure statements came in to effect in September 2010, and the upfront fee ban began on October 27, 2010. Industry experts agree that debt management can be beneficial for consumers, but caution that clients should ask companies whether or not they are fully compliant with these new rules before agreeing to enter their programs.
FTC Notice Beginning December 1, 2009, the U.S. Federal Trade Commission (FTC) began enforcing new rules regarding transparency in advertising relations between product endorsers, advertisers, affiliate marketers, product reviewers, bloggers, celebrities, and other marketers, and the general public.
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