US Debt Resolve, Provider of Debt Relief Services, Announces Compliance With TSR Put In Place By The FTC Months Before Due Date

Online, August 18, 2010 (Newswire.com) - On July 29, 2010 the FTC and Vice President Joe Biden. Federal Trade Commission Chairman Jon Leibowitz announced a new rule to protect consumers of debt relief services at a Middle Class Task Force event at the White House. Following the Chairman's announcement, Vice President Biden discussed the administration's consumer protection agenda and the importance of consumer protection to middle-class families.

The following are a few points of the TSR. For the entire Telemarketing Sales Rule click here http://www.ftc.gov/opa/2010/07/tsr.shtm

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.

"At the FTC we strive every day to make sure America's middle class families get straight deals for their dollars," Chairman Jon Leibowitz said. "This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees. Too many of these companies pick the last dollar out of consumers' pockets - and far from leaving them better off, push them deeper into debt, even bankruptcy."

On the subject of Open and Transparent: "Disclosures should be how well your company has performed with a particular creditor or their retention and completion rates. The consumer is saying, let me choose the company that gives me the best chance to get out of debt." CEO of US Debt Resolve Scott Johnson said.
Additional comments http://www.ftc.gov/os/comments/tsrdebtrelief/543670-00319.pdf

Three other Telemarketing Sales Rule provisions to take effect on September 27, 2010, will:
1. require debt relief companies to make specific disclosures to consumers
prohibit them from making misrepresentations
2. extending the Telemarketing Sales Rule to cover calls consumers make to these firms in response to debt relief advertising

The Final Rule covers telemarketers of for-profit debt relief services, including credit counseling, debt settlement, and debt negotiation services. The Final Rule does not cover nonprofit firms, but does cover companies that falsely claim nonprofit status. Over the past decade, the FTC and state enforcers have brought a combined 259 cases to stop deceptive and abusive practices by debt relief providers that have targeted consumers in financial distress.

Advance Fee Ban

The Final Rule contains specific requirements for debt relief providers related to charging an advance fee before providing any services. It specifies that fees for debt relief services may not be collected until:
1. the debt relief service successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of the consumer's debts
2. there is a written settlement agreement, debt management plan, or other agreement between the consumer and the creditor, and the consumer has agreed to it
3. the consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider

Disclosures and Prohibited Misrepresentations

Under the Final Rule, providers will have to make several disclosures when telemarketing their services to consumers. Before the consumer signs up for any debt relief service, providers must disclose fundamental aspects of their services, including how long it will take for consumers to see results, how much it will cost, the negative consequences that could result from using debt relief services, and key information about dedicated accounts if they choose to require them.

The Final Rule also prohibits misrepresentations about any debt relief service, including success rates and whether the provider is a nonprofit entity. The FTC's Statement of Basis and Purpose, which accompanies the Final Rule, provides extensive guidance about the evidence providers must have to make advertising claims commonly used in selling debt relief services.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357.

The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

To discuss compliance with the TSR guidelines our audit department can be reached at 1-888-991-3328.

US Debt Resolve Media Contact:
Gary McConnel
972-982-9667
Gary.McConnel@usdebtresolve.com
www.usdebtresolve.com