On April 22nd the Federal Trade Commission met with the U.S. Senate Committee on Commerce, Science, and Transportation. The FTC reported that they will continue their attempts to protect financially burdened consumers from fraudulent debt relief scams.
FTC Commissioner Julie Brill “described the FTC’s law enforcement actions, a rule change the agency has proposed to combat deceptive and abusive telemarketing of debt relief services, and the FTC’s ongoing work to educate consumers about debt relief options and how to avoid scams.”
Since 2003, the FTC has brought twenty lawsuits against debt-relief companies and more investigations are under way. Brill’s testimony presented the FTC’s proposal to amend its Telemarketing Sales Rule to apply to instances when a consumer calls a telemarketer in response to debt-relief advertising. The suggested change in the Telemarketing Sales Rule would prohibit telemarketers from making fraudulent claims and would require salespeople to disclose more information to potential customers. In addition, the proposed change would prohibit any debt-relief company from requesting funds or receiving payment before delivering the services it promises. Another action the FTC proposed was an education campaign to assist consumers in managing their finances and in avoiding fraudulent practices.
Let’s hope that the Federal Trade Commission’s proposed changes will be put into effect and in that way help protect vulnerable consumers. In the meantime, if you want to find a reputable nonprofit credit counseling agency make certain to look for one that is a member of the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
If you have questions or are considering filing bankruptcy please feel free to contact me. Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form. I will answer your questions without obligation. Remember, I am here to help.
