Debt Settlement Industry Proves Value to Creditors

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Companies returned more than $2.2 billion in 2008

Our member companies are trained and skilled at working with multiple creditors on behalf of consumers

As credit card companies are experiencing their worst credit losses in decades, debt settlement companies continue to demonstrate that they provide a valuable service, not only to consumers but also to creditors, as the industry returned more than $2.2 billion in consumer debt last year, The Association of Settlement Companies (TASC) announced today.

As a result of rising unemployment, and a growing number of complaints against creditors and collectors for aggressive and sometimes illegal collection practices, more consumers are seeking the services of reputable debt settlement companies, like those that are members of TASC.

"Our member companies are trained and skilled at working with multiple creditors on behalf of consumers," Chris Kesterson, president of TASC, said. "At the same time, we're surprised some creditors like credit card companies are turning their backs on hundreds of millions of dollars immediately available to them to settle these accounts. Consumers are saying to their creditors, 'we want to pay'."

TASC's research shows more than $500 million in settlement funds saved by consumers are available to credit card companies today. This is an important finding as the credit card industry charge-off rate now exceeds 10 percent.

In addition, bankruptcy filings in the United States now exceed 6,000 per day, according to a report from Automated Access to Court Electronic Records. Debt settlement provides consumers with a three-year plan to get out of debt without the 10-year stain of bankruptcy on their credit report. Consumers avoiding bankruptcy ultimately helps creditors as well.

About The Association of Settlement Companies
The Association of Settlement Companies (TASC) promotes fair business practices, consumer protection and industry standards for the debt settlement industry. TASC, founded in 2005, serves to protect consumers through an organization seal that represents best practices and standards of reputable companies. The organization also protects its member companies through lobbying efforts at the state and national levels, as well as awareness initiatives to educate consumers on debt settlement as a financial solution. All TASC member companies pledge compliance to strict association bylaws governing business practices and ethics. For more information, visit


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Ann Marie Austin
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