An amazing tipster (send in your tips here) just sent me an email that USOBA sent out this morning to members. I’ll let you be the judge but I think the email indicates USOBA has finally thrown in the towel on the Federal Trade Commission Telemarketing Sales Rules battle.
If we can take the email at face value, it really is good sound advice and if USOBA really means it, good on them.
The USOBA team highly advises all of our members to be cautious of these new business models, and we strongly encourage all members to check with their legal counsel before moving in any direction.
The downside is that this probably is the hinge point at which a vast number of debt settlement companies and their affiliates will go out of business.
In light of the Federal Trade Commission’s amendment to the Telemarketing Sales Rule, there have been many discussions among industry professionals about possible exemptions, or loopholes to the amendment. The USOBA team has noticed a high number of emails sent from different vendors to debt settlement companies regarding new FTC compliant business models. The USOBA team highly advises all of our members to be cautious of these new business models, and we strongly encourage all members to check with their legal counsel before moving in any direction.
We understand that this amendment has the potential to greatly affect the debt settlement industry and finding exemptions and loopholes in the ruling could protect your revenue stream. However, the USOBA team wants to stress that these loopholes could be potential traps for companies. Debt settlement companies should be wary when pursuing marketing programs or business models based on such loopholes. For these reasons, we are warning industry professionals to avoid jumping at the promise offered by a loophole – consult your legal counsel immediately before making any changes to your business models.
Below are some of the common business model changes that companies should be wary of:
- Changing to a Non-Profit Business Model
- Intrastate Telephone Calls
- The “Face-to-Face” Exemption
- “Internet Only” Transactions
- “Attorney Model” Transactions
For more information about these models, click below to see a report from Loeb & Loeb, LLP attorneys, Michael A. Truman and Michael Mallow.
Companies should carefully consider a business model that complies with the FTC’s advance fee ban. Several of our members have already implemented new business models that comply with the FTC rulings. For more information about FTC compliant business models please contact us at [email protected]
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