Posts Tagged ‘debt restructuring firms’

TASC Supports New Mandates on Debt Restructuring Firms

Lawyers for the FTC have succeeded in arguing for several new restrictions on debt settlement companies, culminating in a new policy making legislation coming from the government.

Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.

In addition, the lawyers have successfully argued for mandated enhanced disclosure requirements. These are modeled on current and proposed standards from the industry’s leading trade association, TASC (The Association of Settlement Companies). TASC already offered guidance and regulations for debt restructuring companies, something I talked about in my earlier post: What to Look for in a Trustworthy Debt Settlement Company. before FTC lawyers and legislators got involved.

TASC originally opposed one key part of the proposed legislation: the prohibition of debt settlement companies from accepting fees from a consumer for debt settlement services prior to the actual settlement of the consumer’s debt.

(more…)