“The second most interesting data point to emerge was only one of the top six reasons for not working with debt settlement providers related to the economics of the settlement or net recovery, while four of the five reasons were solely related to perceptions of security and compliance practices of debt settlement providers.
Even the perceived reputational credibility of debt settlement providers ranked only fourth in concern as a reason for not working with the industry. This clearly illustrates that debt settlement companies need to do a better job of either coming into compliance in the same manner that creditors, debt buyers, legal recovery firms and collection agencies are required to do, or, the debt settlement industry as a whole needs to do a better job of demonstrating and communicating HOW they meet specific compliancy requirements pertaining to data security, the FDCPA, third‐party communications concerns, and recent regulations released by the CFPB that require service providers such as debt settlement providers to be able to demonstrate to debt buyers and collection agencies the efficacy and oversight of their policies and procedures in the area of consumer financial laws and data security.”
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