In a move that seems aimed at the attorney model of debt settlement which is designed to circumnavigate the FTC telemarketing sales rules on debt settlement services, NoteWorld, one of the two primary escrow companies for consumer funds, said they would not accept companies that do not adhere to the new FTC rules.
NoteWorld has spent the last three months reviewing the various interpretations of the Federal Trade Commission’s new regulations regarding the debt settlement industry. After careful consideration it is NoteWorld’s decision to only provide payment servicing for new consumers in debt relief programs where fees are charged or collected after debt relief services have been provided as described by the FTC. This policy adheres to NoteWorld’s promise to rigorously comply with regulation for our customer’s protection.
Effective October 27, 2010, we will adhere to the advance fee ban by no longer accepting new accounts from programs which charge debt relief service fees prior to settlement. Our servicing of payments for accounts boarded with us prior to October 27, 2010, will not be affected. – Source
Two thumbs up for NoteWorld for making the right move.
Rumor is that Global Client Solutions, the other major escrow company, is going to make a similar announcement.
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