David sent in the following question:
Hello Steve,
What do you think the chances are of the Debt Settlement Consumer Protection Act S.3264 passing?
I was thinking since all up front fees are now banned, maybe that will clean up the industry and S.3264 might not be needed as much now.
For those not familiar with S.3264 it is the Debt Settlement Consumer Protection Act that was previously submitted as a bill in Congress.
I have not heard anything recently from my contacts in Congress about the bill. When the debt settlement industry was pushing back against the FTC telemarketing sales rules the DSCPA had some life pushed back into it but as of now it has quieted down.
Frankly I never thought the DSCPA was the club to watch out for, it is the Consumer Financial Protection Bureau that will have the ultimate power. With the CFPB now a reality it will be interesting to see how it creates itself into the financial watchdog the country has needed.
If the debt settlement industry wants to increase its chances to avoid S.3264 the next hurdle will be to make sure non-compliant debt settlement companies are outed after the FTC TSR goes into force. The more non-compliant companies that are allowed to roam free, the greater the cry will be to enact legislation to further rein in the industry.
The future of S.3264 is really up to the individual players in the industry. I you see a bad actor that needs some public attention, send me a tip and tell me about them.
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