Category Archives: Regulation / Legislation

Nova Scotia, Canada Cracks Down on Debt Settlement Companies

Nova Scotia, Canada has recently introduced new legislation to help protect consumers from debt relief companies and rogue debt collection companies. The Debt Collection and Management Reform (2012) Act will target debt relief companies that make disturbing marketing practices and unachieved promises. It will also target debt relief companies that charge advance fee or up-front [...]

CFPB Appears to Lay Ground Rules to Begin Enforcement in Debt Relief Industry

In a predatory move, the Consumer Financial Protection Bureau (CFPB) has issued a public request for comment over rules that could be used to regulate debt relief industry companies, both for-profit and not-for-profit. The document, “Procedural Rules to Establish Supervisory Authority over Certain Nonbank Covered Persons Based on Risk Determination” has been put out for [...]

Office of Fair Trading in UK Issues New Rules for Debt Relief Providers

The Office of Fair Trading (OFT) in the UK has recently issued new rules that govern the delivery of debt relief assistance in the UK. Under these new rules a number of items are considered to be unfair or improper business practices. The OFT stated: Businesses specialising in ‘lead generation’ use various marketing methods to [...]

Current List of Debt Settlement Companies Licensed in Maryland

According to the Maryland Division of Financial Regulation, the following companies are the only ones licensed to offer debt settlement services in Maryland under the new debt settlement law. This list is effective April 19, 2012. Freedom Debt Relief 1875 S. Grant Street, Suite 450 San Mateo, CA 94402-2676 CareOne Services, Inc. 8993 Stanford Boulevard [...]

CFPB Appears to Embrace Debt Workout Arrangements

The Consumer Financial Protection Bureau has recently released a copy of their new simpler proposed credit card agreements. One point that caught my eye was the use of the term “Workout Arrangement” in conjunction with defaulted debt. The use of this term, rather than specifying credit counseling or some other debt relief channel is very [...]

Consumer Financial Protection Bureau May Issue Early Warning of Investigation Activity

The CFPB today announced a new policy that may give people under investigation by the CFPB a chance to respond early in an investigation. The Consumer Financial Protection Bureau (CFPB) today outlined plans to provide advance notice of potential enforcement actions to individuals and firms under investigation. The Early Warning Notice process allows the subject [...]

Maryland Debt Settlement Services Provider – Advisory Notice

I’d like to thank a very gracious tipster (send in your tips here) for sending me notice of this announcement from the State of Maryland. For all industry and consumers that are interested in free access to the site debt relief compliance module to check current regulations, click here. Get Out of Debt Guy – [...]

Free Debt Relief Industry Regulation and Legislation Tracking

I’m happy to announce today that both consumers and debt relief companies will now have FREE access to debt relief industry compliance, regulation, and legislation resources. This site module for the GetOutOfDebt.org site will give site visitors fee access to be better informed and educated about debt relief industry regulations. In this module you will [...]

CFPB is Looking for Public Comments on Debt Relief Industry

Last week I had the pleasure of visiting the Consumer Finance Protection Bureau (CFPB) in Washington, DC. to meet with staff and attend a planning session. Elizabeth Warren started the meeting with an introduction and left the meeting in the capable and good hands of Peggy Twohig and Alice Hrdy, both who supervised debt relief [...]

In Ohio If You Are Working With a Credit Counselor You Can’t Be Garnished

And here is one of those little odd facts that appears from time to time that I never knew. Yes, I still learn new stuff frequently as well. The Ohio statute 2716.03 Commencing proceeding for garnishment of personal earnings says: No proceeding in garnishment of personal earnings shall be brought against a judgment debtor for [...]

See Who is For and Against California SB 708 Debt Settlement Legislation

A tipster (send in your tips here) sent me in the link to the current California debt settlement bill that listed who was before and against it. What is interesting to note is that Visa is for it and Consumers Union. Gail Hillebrand who was behind these efforts at Consumers Union is now with the [...]

California Debt Settlement Legislation Tries to Close Attorney Loophole

Apparently the attorney loophole for debt settlement services is being address in new legislation. The current bill passing through the legislative process in California has had a recent addition that specifically targets advanced fee attorney model debt settlement services. Here is what the current version of the bill says regarding attorney exemptions: Section 12501 “(E) [...]

Awesome Webinar from National Policy Group on State Money Transmitter Law Compliance for Debt Relief Operations

If you have not had the opportunity to attend the webinar put on by National Policy Group on State Money Transmitter Law Compliance, you should. The free webinar covers issues surrounding the money transmitter law that impact credit counseling groups. The question the webinar posed is if credit counseling agencies need to be licensed as [...]

FTC to FCC: Sellers Responsible for Outside Telemarketers

In a statement made by the FTC to the FCC, the point that end providers are responsible for what outside telemarketers and agents say was reinforced. This is a very important point to keep in mind if you are using a call room or an outside sales force and you are not monitoring what they [...]

State Money Transmitter Law Compliance for Debt Relief Operations. It’s Free to Attend.

National Policy Group will host a complimentary two-part Webinar on Tuesday, May 10 and May 17, 2011 at 3:00 PM (ET) on the subject of “State Money Transmitter Law Compliance for Debt Relief Operations”.“ This is a unique program for debt relief agencies and related organizations that receive and disburse consumer funds to understand their [...]