Many Businesses in Debt Settlement Industry Upset Over New FTC Regulations

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A majority of debt settlement companies are in an uproar over the latest changes in the debt relief industry that eliminate the ability to charge upfront fees. Emerge America responds positively to the rules and what they mean for consumers.

Roslyn Heights, N.Y. (Vocus) August 2, 2010 -- Thursday July 29 saw many changes for the debt settlement industry, as the Federal Trade Commission stated that a company may only charge fees once it has reduced, settled or renegotiated a client’s debt.

According to the FTC, the new regulation is intended to put consumers first and stop companies from taking advantage of consumers that genuinely need help and leading them further into debt.

“The companies that are upset by this change aren’t seeing the big picture,” said Steve Anello, managing member and partner of Emerge America. “Our business actually helps clients reach financial freedom. Since inception, these sorts of policies have always been part of our fundamental business plan.”

Emerge America is one of the few firms that employs a performance based debt settlement plan. While the new regulations changes little for Emerge America, most companies in the industry will need a complete overhaul of their payment structure, which will cause a cash flow strain.

“Emerge America stands ready to absorb high-quality industry participants caught in the eye of the storm in need of a new home,” stated Anello. He added, “Scam companies have swindled a lot of consumers over the years, but hopefully this regulation will help eliminate that threat. Our first priority has always been consumers facing financial hardship, and we hate seeing people become victims.”

The new rule will go into effect October 27, 2010. Emerge America urges consumers interested in hiring a debt consolidation firm to remember this new regulation when doing their research.

“So many companies in this industry are incredibly frustrated right now, and many of them are probably already planning ways around the new regulations,” Anello said. “Consumers should always think twice and try to find a company that is legitimate and honest.”

About Emerge America
Emerge America is a leading debt management company, serving individual consumers as well as small to midsize businesses with the industry's most innovative debt settlement services. The management team, are proud members of the IAPDA (International Association of Debt Arbitrators). Emerge America is one of a handful of debt settlement companies in the industry, that since inception, collects its settlement fees ONLY AFTER a bona fide settlement has been achieved. This is referred to as a "performance based fee" structure, versus what most of the debt settlement industry follows, which is referred to as a "flat fee" structure. Armed with many years of customer service, settlement and negotiation skills, the management and staff offer outstanding support to its customers.

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Steve Anello
Emerge America
888-777-5671 ext.126
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