In a press release sent out today by Debtmerica they made some interesting statements regarding attorney model debt settlement companies.
“At Debtmerica, our staff all participated in making sacrifices so we could continue to pursue our mission of helping Americans become debt free and remain so. To see that consumers are readily engaging in our new debt resolution programs and achieving faster settlements is a significant milestone,” says Harry Langenberg, managing partner and Chief Operating Officer.
With this new ruling in place, unfortunately many less stable service providers have sought sanctuary by partnering with law firms who claim exemption from the FTC rule and continue to assess substantial up-front fees to consumers through these so-called “attorney model” debt settlement firms. Given the inherent restrictions placed on legitimate service providers by the FTC rule, some service providers felt they had no other alternative than to work around the contingency fee constraints or to close up shop. Debtmerica believes that these “attorney models” are nothing more than a temporary loophole in the FTC rule and expects the FTC to scrutinize the service providers operating in this manner. Debtmerica is also a proponent of states adopting regulations consistent with the FTC ruling while also allowing firms to assess a fair fee for services rendered.
“Debtmerica has worked tirelessly to adapt to the new FTC rule and is not gambling that any loopholes in the law will successfully circumvent it. While Debtmerica was well prepared to weather the challenges in our industry, we are warning consumers to be very careful about engaging with other companies that have chosen riskier business models that may jeopardize their stability and the success of their client programs,” explains Jesse Torres, Debtmerica’s other managing partner.” – Source
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