A debt settlement company telling you to pay a fee before they settle anything isn’t industry standard — it’s a federal violation. The FTC’s Telemarketing Sales Rule has banned advance fees since 2010.
I paid into a debt settlement program for months — and nothing settled. You have legal rights: the FTC advance-fee ban and the right to get your escrow money back in 7 days. Here’s what to do right now.
Quick Answer: The new FTC 16 CFR Part 310 Telemarketing Sales Rule for debt relief services becomes effective September 27, 2010, and prohibits debt settlement companies from collecting upfront fees. The FTC dismissed arguments from trade associations TASC and USOBA, viewing their opposition as self-serving attempts to protect deceptive industry practices.I’m just now getting an …
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