DALLAS - (Business Wire) Credit Solutions will speak at a Federal Trade Commission (FTC) public forum tomorrow in Washington, D.C. on behalf of the hundreds of thousands of U.S. consumers who’ve achieved debt freedom through debt settlement – and in support of effective state regulation of the U.S. settlement industry. The FTC forum is exploring proposed amendments to the federal Telemarketing Sales Rule, which aims to address nationwide consumer protection regarding debt-relief services. A recent survey conducted by the United States Organizations for Bankruptcy Alternatives (“USOBA”), a debt settlement trade Association found that a straight out ban on pay as you go fees as proposed by the FTC will likely force 84% of respondents to shut down their debt settlement services, by forcing debt settlement companies to shoulder substantial out-of-pocket costs, potentially for years, possibly without reimbursement.
“Credit Solutions is grateful for the opportunity to provide an active voice for over 100,000 of our clients and hundreds of thousands of Americans currently overwhelmed with debt,” said Credit Solutions CEO Doug Van Arsdale. “Credit Solutions strongly supports the respected, 118-year-old Uniform Law Commission and the Uniform Debt Management Services Act. We believe that the FTC should follow the path of several states and, rather than banning all fees before settlement of debt, apply some restrictions.”
Crafted after an extensive, multi-year study, the UDMSA provides expansive, comprehensive regulation of all existing debt counseling and management services options via Registration, Agreements and Enforcement Provisions which has met the approval of industry state regulators, associations and consumer groups; has been adopted in more than a half dozen states; and is pending introduction or enactment in more than a dozen additional states.
“State legislatures and the ULC have determined that debt settlement providers can serve consumers effectively when properly regulated, and, in a legitimate exercise of their police power, have determined to regulate them in a certain way to protect their own citizens,” Van Arsdale said.
Over the past two years, Credit Solutions has played a leading role as an advocate for regulation by supporting strong, uniform state laws that protect consumers and hold companies accountable, and by testifying in favor of state legislation that requires:
- licensing & bonding of all U.S. settlement companies to protect consumers’ fiscal safety
- adequate disclosure of debt settlement programs’ risks to consumers’ credit scores
- operational transparency, including independently audited financials
“We support the UDMSA and concur that for-profit and not-for-profit debt resolution activities must be regulated equally in order to create regulated consumer options,” said Heather Carmichael, Credit Solutions’ VP of Legislative Affairs.
Credit Solutions submitted more than 40 pages of data and written testimony for FTC consideration. Heather Carmichael, Credit Solutions’ VP of Legislative Affairs commented on the submission, “Hopefully this will foster a greater understanding about the contribution debt settlement plays in the lives of financially strapped consumers.”
Some examples of submitted testimony included:
“Without [CSA’s] help in negotiating with companies and paying off my debt at a reduced percentage of overall debt owed, I don't know where I would have ended up. . . . "
“Our financial situation was wreaking havoc on our young family and it was completely out of our control. . . . Credit Solutions gave us a life line and has been helping us settle our debt by allowing us to save our money in our bank and paying our creditors directly from our bank. We have control of our money and finally feel like we are making progress to be financially stable once again. . . ."
“I'm very thankful for Credit Solutions. They offered me a viable solution that has changed my financial outlook forever. . . . I thank Credit Solutions for helping me out. They lived up to their end of the bargain and I lived up to my end.”
About Credit Solutions
The nation’s debt settlement industry leader, Credit Solutions is recognized by the American Business Awards for the "Best Customer Services Department in Financial Services". A charter policy partner of the United States Organization for Bankruptcy Alternatives (USOBA), Credit Solutions is certified by BSI Management Systems for USOBA best-practice compliance. For more information, visit www.creditsolutions.com.
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Credit Solutions
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