Los Angeles, CA (PRWEB) November 8, 2010
The Federal Trade Commission (FTC), the nation’s consumer protection agency, has amended the Telemarketing Sales Rule (TSR) effective October 27, 2010 to add specific provisions to curb deceptive and abusive practices associated with some debt settlement service providers. The FTC's new rule specifies minimum standards for disclosures used in the marketing of debt settlement services, and prohibits debt settlement providers from making false or unsubstantiated claims about their services. The new rule also prohibits debt settlement companies from charging and accepting fees before the actual settlement of a consumer's debt.
Laurence Larose, executive director of The International Association of Professional Debt Arbitrators (IAPDA) says “The IAPDA fully supports the new rule amendment and the effect that this will have on the Debt Settlement Industry and our members. We believe strongly that our members and their companies will recognize the many benefits and realize very positive results from full compliance. Demand for services is at an all time high and competition is at it's lowest level in years with the departure of non-compliant companies from the industry.”
Larose also says “Reports indicate that a compliant, performance based business model will lead to higher client conversions, lower marketing costs, better client retention, earlier settlements, improved consumer satisfaction, stronger long term cash flows and will also open new doors and markets for potential clients.”
Today, Americans owe approximately $2.5 trillion in consumer debt – not including mortgages. The average American with a credit file holds more than $10,000 in credit card debt. Debt settlement is a much needed and effective form of debt relief that allows providers to negotiate directly with creditors on the consumer's behalf to resolve the consumer's unsecured debt balances.
IAPDA offers training and certification in consumer Debt Settlement and Arbitration, which affords individuals the opportunity to become a Certified Debt Specialist (CDS). The CDS designation means the individual debt consultant has undergone thorough training in settling a consumer’s debt, which, as Larose points out, is much different than simply a managed payment plan or bankruptcy: “We certify people to settle a consumer’s debt with their creditors, oftentimes saving them a large percentage of the total owed” said Larose. ”For millions of people, this is by far the best option available. That’s why we're so supportive of the new rule amendment – it lets consumers know that when they have a compliant IAPDA-Certified Debt Specialist working for them, they have a consumer focused professional who is specifically trained in debt settlement procedures, knows the rules governing the industry and is there with them for the long haul.”
Larose goes on to say “We are proud to have served the Debt Settlement Industry for over a decade and we look forward to continuing to play a major role in the long and exciting future of Debt Settlement. The IAPDA Certification training program is the industry leader by far and for the benefit of new and existing IAPDA members our training includes complete details and compliance information regarding the new FTC TSR Rule ammendment.”
To learn more about IAPDA and their debt settlement certification program, visit them online at http://www.iapda.org
The International Association of Professional Debt Arbitrators (IADPA) is the debt settlement industry’s leading certification training program. In business since 2000, they have an active membership that exceeds 2,900 members, and offer online-based training to both individuals seeking certification, and companies that want certification for their employees. You can visit them online at http://www.iapda.org.
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