PayingPaul.com Explains New Debt Relief Rules to Consumers

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PayingPaul.com, an educational and referral resource for consumers seeking ways to pay off their debts, is educating consumers on the new debt relief rules issued by the FTC. Knowing these rules will help consumers identify scam outfits from legitimate debt help providers. A key part of the new rule, marketers of debt relief programs are finally required to ensure that they only work with companies who are in compliance.

Following the recent FTC amendments to Telemarketing Sales Rules (TSR), PayingPaul.com (http://www.payingpaul.com) has announced it will only recommend companies that are in compliance with the new provisions that take effect during the next month. Under the new debt relief rules proposed by the FTC, marketing companies and other entities who have business relationships with debt settlement companies are now obligated to ensure they are only working with companies in full compliance. Having seen that much of current landscape of the debt relief industry has been shaped by bogus lead generation companies, PayingPaul.com is excited that they are finally being held responsible.

As of September 27, 2010, some of the key points the new rulings will require debt relief companies to follow are:

  •     To disclose specific aspects of their service that could have a negative impact on consumers finances.
  •     To explain how long it will take to see results, and how much it will cost.
  •     To refrain from misrepresenting their success rates or claiming to be non-profit.
  •     To apply the FTC rules to incoming calls as well as telemarketing conversations.
  •     To give clear information on how the process works before requiring a commitment.

In addition, on October 27, these companies may not charge an up-front fee before any debt relief is put in place. These new rules apply to all kinds of unsecured debt relief situations, not just credit card debt.

On the debt relief services side, the new rulings will allow them to allow companies to set up a "dedicated account" for their fees and savings to be used in paying off debtors. Five conditions are required for these accounts:

  •     They must be held by an insured institution.
  •     The consumer must be the owner of the funds.
  •     They must be able to make withdrawals at any time with no penalty.
  •     The debt relief company can have no affiliation with the financial institution handling the account.
  •     The company administering the account and the debt relief company may not exchange referral fees.

In an effort to continue to maintain a reliable and professional service to its clients, PayingPaul.com will be reviewing all of the debt settlement companies they recommend for compliance with the new rules and will continue to list only those who comply with the new consumer protections. A free consultation on debt relief from PayingPaul.com will remain a legitimate way to pay off your debt without bankruptcy(http://www.payingpaul.com/bankruptcy.php)

The experts at PayingPaul.com offer information on many of the largest debt settlement companies in the country. PayingPaul.com is a website dedicated to helping consumers pay off their debts without a loan or filing bankruptcy (http://www.payingpaul.com/bankruptcy-information.php).

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Johanna Yerby

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