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 »

As I write this article there are only 40 days till the first part of the new Federal Trade Commission telemarketing sales rules (FTC TSR) kick in on September 27, 2010 regarding truth in advertising and good faith estimates. With all of the debt settlement entities that third-party escrow companies Global Client Solutions and NoteWorld provide services for, how in ... Read More »

The letter below was just added to the public record but as you can see, up to 7 days before the announcement of the new telemarketing sales rules, USOBA was still at it. What I find interesting is the new telemarketing sales rules apply to others and not just debt settlement companies but no other segment they apply to was ... Read More »

The Federal Trade Commission today told the U.S. Senate Committee on Commerce, Science, and Transportation that the FTC has made it a top priority to protect financially distressed American consumers from deceptive debt relief schemes. With Americans continuing to feel the effects of the economic downturn, the FTC has stepped up efforts to stop fraudulent financial schemes that exploit consumers, ... Read More »

As of September 27, 2010, debt settlement and debt relief companies are going to have to provide data to consumers when enrolling new clients or when promoting results. These facts are are part of the “Good Faith Estimate” and will help consumers to select the company they wish to work with. The Federal Trade Commission says that they have determined ... Read More »

Mike Croxson, the president of CareOne, a provider of debt settlement and debt management plans, and I chat about current events in the debt relief world. Some of the issues Mike and I talk about: Where are the loopholes from the Federal Trade Commission telemarketing sales rules. What is the endgame to chasing loopholes. The access to attorneys for debt ... Read More »

This week Damon Day and I talk about the new debt settlement rules that were announced by the Federal Trade Commission, the need for them, the impact on debt settlement companies, why some debt settlement companies will fail and others thrive, and more about the attorney model of debt settlement that is being promoted as the way to save the ... Read More »

What began as a simple story about a Morgan Drexen press release last week has turned into so much more. Last Friday I wrote “Is Debt Settlement Company Morgan Drexen a Flip-Flopper?” where I talked about their seemingly sudden switch from opposing the Federal Trade Commission effort to roll out new rules that regulate debt settlement companies, to applauding them. ... Read More »

Thanks to a great tipster (send in your tips here) I learned today that Morgan Drexen sent out a press release that was unbelievable. Debt settlement company Morgan Drexen was against nearly everything the FTC was working on in the proposed telemarketing sales rules. Even the Federal trade Commission says so in their final document. “One industry member [Morgan Drexen] ... Read More »

This morning Howard Dvorkin, the president of Consolidated Credit Counseling Services, a Florida based credit counseling non-profit company, and I talked about the new debt settlement rules and other things. Here are some of the topics we chatted about. Attorneys getting into debt settlement right now. Credit Advocates, a Florida debt settlement company, regarding this article. Does credit counseling want ... Read More »

Yesterday I wrote about a statement that The Association of Settlement Companies (USOBA) made about the new consumer protection rules passed by the Federal Trade Commission covering debt settlement companies. Now today the other trade association, United States Organizations for Bankruptcy Alternatives sends out their press release on the new rules. First off, I was crying with laughter when I ... Read More »

The new Federal Trade Commission rules have now been released that will regulate how fees can be charged in debt settlement programs. Any consumer that is thinking of enrolling in any debt settlement program before the new rules take effect on October 27, 2010 needs to be aware, after that date a debt settlement company can not charge you a ... Read More »

I’m just now getting an opportunity to sit down with the entire 229 page FTC document and go through it. Overall the FTC appears to have placed little to no weight or credence on the testimony or supplied facts of the debt settlements trade associations of The Association of Settlement Companies (TASC) and the United States Organization of Bankruptcy Alternatives ... Read More »

This assessment of the new debt relief industry rules from the Federal Trade Commission comes from my friends at the Venable law firm and is worth reading for their assessment. Read More »

Below you will be able to hear my recording of Vice President Biden’s comments during the announcement of the new Federal Trade Commission Telemarketing Sales Rules that cover debt relief services. You can hear all of the photographers in the background, including me, and the audio in the room wasn’t all that loud so you will hear a lot of ... Read More »