Debt Relief Industry

NoteWorld Makes Smart Move And Says ‘No’ to Debt Settlement Companies Charging Advanced Fees

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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READ  Flush - Meracord / NoteWorld



About the author

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.

4 Comments

  • Two questions: One, I started with a debt settlement company in September 2010, so I’m assuming the new law really doesn’t do much for me, right? They can continue to take fees without really doing anything??? Two, I just received an email from VertexSoft Corporation, which I believe to be part of or the same company as P & E Solutions, can you verify? If so, from what I’ve read on your site, I think I should be worried. I just started reading a lot of your posts and those comments from others and I’m getting very worried. Have you heard from anyone that any of these debt settlement company’s actually do what they promise and have helped people get out of debt? I just wondering if I would be better off trying to get out of working with this company and try to work with my creditors directly. However, I unfortunately have way too much debt, which is why I started with a debt settlement company in the first place. When going directly to the creditors, they seem to want to only provide a temporary low or no interest rate, which unfortunately at this point, really isn’t enough. I hate to think about bankruptcy, but I’m not sure what other options I have. Do you have a page or information about various options along with what the consequences of those options are (i.e., bad credit score, not being able to get student loans for kids college, number of years before score turns around, etc.)? Thanks

  • Two questions: One, I started with a debt settlement company in September 2010, so I’m assuming the new law really doesn’t do much for me, right? They can continue to take fees without really doing anything??? Two, I just received an email from VertexSoft Corporation, which I believe to be part of or the same company as P & E Solutions, can you verify? If so, from what I’ve read on your site, I think I should be worried. I just started reading a lot of your posts and those comments from others and I’m getting very worried. Have you heard from anyone that any of these debt settlement company’s actually do what they promise and have helped people get out of debt? I just wondering if I would be better off trying to get out of working with this company and try to work with my creditors directly. However, I unfortunately have way too much debt, which is why I started with a debt settlement company in the first place. When going directly to the creditors, they seem to want to only provide a temporary low or no interest rate, which unfortunately at this point, really isn’t enough. I hate to think about bankruptcy, but I’m not sure what other options I have. Do you have a page or information about various options along with what the consequences of those options are (i.e., bad credit score, not being able to get student loans for kids college, number of years before score turns around, etc.)? Thanks

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