Self Help Debt Settlement Website 2SettleMydebt.com - FTC Regulation of Debt Settlement Industry is a Big Win for Consumers
On July 29, 2010 the Federal Trade Commission reined in the Debt Settlement Industry as a whole. The Federal Trade Commission made amendments to the Telemarketing Sales Rule (TSR) to prohibit Debt Settlement Companies from charging upfront fees and requires new disclosures.
Scottsdale, AZ, August 02, 2010 --(PR.com)-- B-EZ Enterprises operates a Patent Pending Self Help Debt Settlement website, www.2SettleMyDebt.com, created by a Credit and Collections insider, to assist consumers in negotiating with their creditors at the first signs of financial hardship responds to the final rule adopted by the Federal Trade Commission (FTC). Although the website 2SettleMyDebt.com does not engage in the telemarketing of consumers there was a contact phone number listed on the website.
B-EZ Enterprises has replaced the phone number with an email address to comply with the new regulation even though the Federal Trade Commission ruling states: “The Rule is targeted at practices that take place in the provision of services, and the record does not indicate that deceptive or abusive practices in the sale of products, such as books or other goods containing information or advice, are common.”
On July 29, 2010 the FTC amended the Telemarketing Sales Rule to include debt settlement companies. After receiving comments by consumer advocacy groups, several State Attorney Generals and of course the Debt Settlement Industry. The FTC enacted rules that B-EZ Enterprises believes made consumers the big winners. The following statement is contained in the preamble of the new regulation: “The Rule provisions will: (1) prohibit debt relief service providers (3) from collecting a fee for services until a debt has been settled, altered, or reduced; (2) require certain disclosures in calls marketing debt relief services; (3) prohibit specific misrepresentations about material aspects of the services; and (4) extend the TSR’s coverage to include inbound calls made to debt relief companies in response to general media advertisements.”
The FTC stated that over the last several years, debt settlement companies have increased their aggressive marketing of consumers to enroll for their services. Their marketing tactics seemed to lack disclosures about how their programs worked, or made misleading statements to entice consumers to enroll for their services. This is a trend that several State Attorney Generals and the FTC have been concerned with due to increasing number of consumer complaints. These complaints in general were from consumers who had on an average paid over $1000.00 in enrollment fees with little or no results.
Under the “Final Rule” Debt Settlements companies who solicit consumers via telemarketing campaigns will no longer be able to charge any fees until they provide a service. The “Final Rule” also addressed inbound calls from consumers who respond to advertisement via various mediums to include; television and radio advertisement. In general if the communication is telephonic, debt settlement and debt reduction companies are covered in this “Final Rule.”
The “Final Rule” also mandates debt settlement providers provide consumers with disclosures to allow consumers to make an educated decision as to whether or not to sign up for a particular service. Debt Settlement Providers are now prohibited from taking any fees until they successfully negotiate an arrangement and the consumer has made at least one payment towards the said agreement. In addition the provider cannot take all of their fees if more than one account is enrolled in the program, but may only charge fees proportionate to the total enrolled debt at the time of enrollment.
What does this mean for consumers? The changes force debt settlement providers to work for the consumer before they receive compensation in that now they cannot get compensated without providing results. This is in stark contrast to the current compensation model used by the majority of the debt settlement industry that utilizes upfront fees with no guarantee of results.
To read the entire amendments to the Telemarketing Sales Rule enacted by the Federal Trade Commission visit: http://www.ftc.gov/os/2010/07/R411001finalrule.pdf
B-EZ Enterprises and 2SettleMyDebt.com is not a Debt Settlement Company but a Self Help website. For more information on their Patent Pending Method of debt negotiation visit: http://www.2SettleMydebt.com.
For additional information on the news that is the subject of this release contact:
Ian Stanton,
Director of Marketing
###
B-EZ Enterprises has replaced the phone number with an email address to comply with the new regulation even though the Federal Trade Commission ruling states: “The Rule is targeted at practices that take place in the provision of services, and the record does not indicate that deceptive or abusive practices in the sale of products, such as books or other goods containing information or advice, are common.”
On July 29, 2010 the FTC amended the Telemarketing Sales Rule to include debt settlement companies. After receiving comments by consumer advocacy groups, several State Attorney Generals and of course the Debt Settlement Industry. The FTC enacted rules that B-EZ Enterprises believes made consumers the big winners. The following statement is contained in the preamble of the new regulation: “The Rule provisions will: (1) prohibit debt relief service providers (3) from collecting a fee for services until a debt has been settled, altered, or reduced; (2) require certain disclosures in calls marketing debt relief services; (3) prohibit specific misrepresentations about material aspects of the services; and (4) extend the TSR’s coverage to include inbound calls made to debt relief companies in response to general media advertisements.”
The FTC stated that over the last several years, debt settlement companies have increased their aggressive marketing of consumers to enroll for their services. Their marketing tactics seemed to lack disclosures about how their programs worked, or made misleading statements to entice consumers to enroll for their services. This is a trend that several State Attorney Generals and the FTC have been concerned with due to increasing number of consumer complaints. These complaints in general were from consumers who had on an average paid over $1000.00 in enrollment fees with little or no results.
Under the “Final Rule” Debt Settlements companies who solicit consumers via telemarketing campaigns will no longer be able to charge any fees until they provide a service. The “Final Rule” also addressed inbound calls from consumers who respond to advertisement via various mediums to include; television and radio advertisement. In general if the communication is telephonic, debt settlement and debt reduction companies are covered in this “Final Rule.”
The “Final Rule” also mandates debt settlement providers provide consumers with disclosures to allow consumers to make an educated decision as to whether or not to sign up for a particular service. Debt Settlement Providers are now prohibited from taking any fees until they successfully negotiate an arrangement and the consumer has made at least one payment towards the said agreement. In addition the provider cannot take all of their fees if more than one account is enrolled in the program, but may only charge fees proportionate to the total enrolled debt at the time of enrollment.
What does this mean for consumers? The changes force debt settlement providers to work for the consumer before they receive compensation in that now they cannot get compensated without providing results. This is in stark contrast to the current compensation model used by the majority of the debt settlement industry that utilizes upfront fees with no guarantee of results.
To read the entire amendments to the Telemarketing Sales Rule enacted by the Federal Trade Commission visit: http://www.ftc.gov/os/2010/07/R411001finalrule.pdf
B-EZ Enterprises and 2SettleMyDebt.com is not a Debt Settlement Company but a Self Help website. For more information on their Patent Pending Method of debt negotiation visit: http://www.2SettleMydebt.com.
For additional information on the news that is the subject of this release contact:
Ian Stanton,
Director of Marketing
###
Contact
B-EZ Enterprises
Ian Stanton
480 278 3717
http://www.2settlemydebt.com
Ian Stanton
480 278 3717
http://www.2settlemydebt.com
Contact
Categories