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Regulation / Legislation

Consumer Financial Protection Bureau In The Works But Don’t Expect Much Before July, 2011


Reuters is reporting recent comments by Treasury Secretary Geithner that have sent a clear signal that the new Consumer Financial Protection Bureau (CFPB) will not be active in enforcement actions until July, 2011. “It is fair to say that until that authority is transferred, which will not happen before July of 2011, and before there is a confirmed director in ... Read More »

    New California Legislation Impacts Debt Management Plan and Debt Settlement Providers

    Ready to Collapse

    On September 30, 2010, Governor Arnold Schwarzenegger signed into law California AB 2789, the California Money Transmission Act (the “CA MTA”).1 The CA MTA expands the state’s current regulation and licensure requirements for money transmitters by the Commissioner of the Department of Financial Institutions (the “Commissioner”) by covering domestic money transmitters, including stored value card issuers and, potentially, credit counseling ... Read More »

      Venable Presents Overview of the New Consumer Financial Protection Act

      Today the Venable law firm, through their debt relief experts Jeffrey S. Tenenbaum, Esq. and Jonathan L. Pompan, Esq. provided an overview of the new Consumer Financial Protection Act (CFPA) and the Consumer Financial Protection Bureau (CFPB) and how it applies to credit counseling agencies, debt settlement companies, and debt relief service providers. The presentation is about 1:25 but it ... Read More »

        What About S.3264 Passing? What Are The Odds?

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        David sent in the following question: Hello Steve, What do you think the chances are of the Debt Settlement Consumer Protection Act S.3264 passing? I was thinking since all up front fees are now banned, maybe that will clean up the industry and S.3264 might not be needed as much now. For those not familiar with S.3264 it is the ... Read More »

          Trying to Get Around Debt Settlement Rules By Calling Advanced Fee a Retainer. Not So Fast Bucko.

          Retainer to Beat Advnace Fee

          One of the rumors I’ve heard lately is from some debt settlement companies that claim they are going to get around the ban on advance fees, starting October 27, 2010, for debt settlement by calling the fee they will ask for, a retainer. The argument goes something like this. “But because I’m an affiliate of an attorney I can charge ... Read More »

            USOBA Sends Out Message to Members. Beware of Loopholes.

            Ready to Collapse

            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 ... Read More »

              CareOne Sends Notice to NFCC That They Should Comply With FTC Rules

              Ready to Collapse

              Here is a copy of the letter that CareOne sent to the National Foundation for Credit Counseling yesterday asking them to comply with the new FTC telemarketing sales rules. Apparently both ACCPros and AICCCA received the same letter. August 31, 2010 Susan C. Keating President and CEO National Foundation for Credit Counseling 801 Roeder Road, Suite 900 Silver Spring, MD ... Read More »

                Will We Still Have a Job in Debt Settlement?

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                “Dear Steve, I’m many of the employees that have recently found themselves wondering what is going to happened to my job at the end of September. I work for a company called [ ] and their back end is serviced by Legal Helpers Debt Resolution or Eclipse (Not sure what the relationship is there). Our boss recently told us that ... Read More »

                  Debt Settlement Company Says “Enough is Enough” and Works Hard to Comply With FTC.

                  Ready to Collapse

                  With permission I am posting the following from an email I received from a debt settlement company I have written about on this site. The company in question does not want to be identified but they have allowed me to share their “turning point” moment that made them realize that FTC TSR compliance is the best way to go. They ... Read More »

                    Loeb & Loeb Law Firm Issues Guidance to Debt Settlement Companies Looking at FTC Loopholes

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                    Since the Federal Trade Commission telemarketing sales rules (“TSR”) were released I’ve written about a number of claims and assertions debt settlement companies have made to continue business as usual. We’ve heard all sorts of strategies that companies claim are legal, loopholes or not covered by new regulations going into effect on September 27, 2010. The law firm of Loeb ... Read More »

                      Will We Be Able to Continue Business as Usual or Will We Have to Comply?

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                      I typically get questions from consumers but I happened to get one from a company asking about new Federal Trade Commission regulations. The questions was: Will the new FTC and Schumer-McCaskill Amendment 3960 affect companies like mine that are use the attorney modle in all 50 states? Will we be able to continue business as usual or will we have ... Read More »

                        New Mailer Promoting Attorney Model Debt Settlement for FTC TSR

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                        Thanks to a tipster (send in your tips here), here is the latest email that is being sent around promoting an attorney model to deal with the FTC TSR rules. It is not clear from the mailer if this is simply an advertisement to help debt settlement companies comply with the new rules or providing a solution they think will ... Read More »

                          Is TASC the New Sheriff in Debt Settlement?

                          Ready to Collapse

                          Recently Dave Leuthold, the executive director of TASC, and I have been communicating about the news that TASC has come out, be it a bit begrudgingly, in support of the new Federal Trade Commission telemarketing sales rules (TSR) that regulate the debt relief and debt settlement industry and protect consumers. The full rules going into effect on October 27, 2010. ... Read More »

                            Debt Settlement Companies Setting Up Offshore Better Watch Out Says the OFT

                            Today I had the pleasure of interviewing Nigel Cates, the Deputy Director of the Credit Group with the Office of Fair Trading (OFT) in England. The issue at hand was one that had been raised previously here. The allegations going around was that a law firm/marketing company was trying to recruit affiliates and possibly lawyers to join them in the ... Read More »

                              Debt Settlement Companies Caught Violating New FTC Rules Better Prepare to Pay Really Big Fines

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                              To be honest I really had not thought about how much the fines per violation were going to be for companies that were found to be not in compliance with the new Federal Trade Commission telemarketing sales rules covering debt relief organizations. I mean how much could they really be? Well, thanks to the FTC for clarifying the fines for ... Read More »

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