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Home > Debt Relief Industry > TASC & USOBA Here It Comes. You’ve Got Nobody But Yourselves to Blame.

TASC & USOBA Here It Comes. You’ve Got Nobody But Yourselves to Blame.

Lot’s of items are all coming to a head this week regarding the debt settlement industry. The debt settlement trade associations have been called, on short notice, to a hearing to be held by the U.S. Senate on April 22, 2010 where my bet is they will not be met with party favors and a cake.

I bet the Senate and other regulators have had just about enough of bad debt settlement companies and trade groups TASC and USOBA not policing their own industry and the government is going to jump in with both feet.

In my experience both TASC and USOBA have been TOTALLY ineffective at spanking their bad members and kicking them out of their groups. They have not taken any public action I can think of to police the debt settlement industry against specific companies and self-regulate members to make government regulation unnecessary.

Debt settlement companies are not going to like the regulations that are coming as a result of this Senate hearing.

New Debt Settlement Proposed Federal Legislation

These same companies are also not going to like the new legislation that is supposed to be introduced this week in Congress that has been pushed forward by credit counseling trade associations in what appears to be an effort to put the debt settlement guys out of business and to protect their own credit counseling industry.

What appears to be missing in the proposed legislation is a fair and balanced approach that gives consumers new options and solutions to resolving their debt.

More than one confidential source has confirmed ([email protected]) that this legislation that will be put forward in an attempt to make it a federal law to limit up-front fees by debt settlement companies to $50, prohibit monthly fees, and not allow debt settlement companies to charge more than a fraction of what they do now, but this time only after the debt has actually been settled. And there is more juicy stuff in the proposed legislation but we’ll wait to see the public draft to see if it stays in till it’s presented.

The way I see it, the debt settlement industry has one last chance to clean up their act by themselves and clearly demonstrate they can be trusted to police their own trade associations and members. The last thing the FTC or U.S. Senate wants is more happy smoke blown at them from double-speaking debt settlement trade associations. Government lawmakers and regulators need to see action taken or they will take it.

TASC & USOBA, this is the time to start pitching bad members under the bus if you want to save your industry and your credibility.

TASC & USOBA Here It Comes. Youve Got Nobody But Yourselves to Blame.
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Alexvidmaster

    Certainly, very easy to mock USOBA and TASC, as we all have the “freedom” of speech, at the same time i would expect for a Conscientious individual, as the one who dedicates his time to write so much about debt settlement thru this blog/site,etc, an so on to have the delicacy and the politeness to at least make a comment or notation in regards to his concern for 500 thousand individuals who will be unemployed. However it’s the case that is not of his interst on concern and he could find refugee and haven on the fact that he is just reporting the news, which i would condone as an excuse as long that would be truthful; however it is not the case for the one who is un-bias maintain a neutral verb. which obvioulsy is not the case of Mr Steve, i wish the best for the 500 thousands of new un employed individuals that will result, i hope that Senator, Charles E. Schumer have an idea to re employ these individuals. i guess they the 500.000 unemployed individuals will have a new hero…charles e Schumer. Kudos… i guess.

    • http://GetOutOfDebt.org Steve Rhode

      Five hundred thousand individuals will be unemployed because of what?

      Steve

  • Jeff

    I enjoyed you inside knowledge of the debt industry, and I strongly agree with you that you USOBA and TASC screwed themselves over by not regulating their own members. What’s the point of a membership seal when any unscupulous companies can just obtain by paying a monthly membership fee. It’s like buying a police badge and breaking the law with it.

  • http://DamonDay.com Damon Day

    Let me guess, TASC and USOBA don’t charge performanced based membership dues, so all these debt settlement companies that are now unhappy with their representation and don’t feel that they got their money’s worth, won’t be able to get a refund right? Ha Ha, now maybe they can start to understand the problem with their fee structures.
    Then again, I bet they still won’t quite grasp it.
    .-= Damon Day´s last blog ..Credit Solutions of America sends me a Cease and Desist Letter =-.

    • http://GetOutOfDebt.org Steve Rhode

      Refund. LOL

  • Tim

    Hey Steve,

    Reading your blog is better than watching TV. I had to write that. Keep up your good work. Keep people informed!

    Virtually your friend,
    Tim

    • http://GetOutOfDebt.org Steve Rhode

      Tim,

      Thanks for the comment. Made me chuckle.

      Steve

      • Tim

        Hey Steve,

        I saw the Committee’s webcast. It’s the death knell for the industry. It’s easy for me to sit as an outsider; it’s hard for me to see people lose work (especially during these times). Contrary to popular opinion there are good people who are involved in debt settlement. It is a crappy business, nonetheless.

        Tim

      • http://GetOutOfDebt.org Steve Rhode

        Tim,

        The hearing was brutal and the worst enemy of the industry is their own trade associations. Ansbach from USOBA did a horrible job of testifying. I think it’s the trade associations that bear the responsibility for the failure of the industry due to their ineffective leadership.

        Steve

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