40 States Want The Government To Concentrate On Debt Relief Companies

By Author: Jennifer McClelland
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The attorneys general from Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wyoming have all requested the Federal Trade Commission to increase the regulation of corporations that have been offering debt assistance to persons and families in the United States.

One of the things that the FTC is now thinking about imposing on the debt respite corporations is to incorporate them in the Telemarketing Sales Rule.

One wrong step from the Credit Solutions of America corporation led to the actions being filed. The corporation has been wrongly claiming that it could lessen credit card debt by 50%. This angered Illinois Attorney General Lisa Madigan enough to sue the company and its CEO. In the proceedings, Madigan states that Credit Solutions of America never ...
... go through with their end of the agreement and never really talk with the creditors of their patrons even though the patrons stop paying their creditors directly and are really making payments to Credit Solutions of America. Of course, for the reason that the creditors arent getting their payment, they are suing the customer to get their cash; and winning.

Madigan has as well said that her office has gotten over 12,000 complaints regarding this matter.

Some of the regulations that the FTC is thinking about imposing on the debt relief corporations incorporate:

- Prohibiting the corporations from charging the consumer anything until services have been performed. This would also need more disclosure to consumers; counting how long it will take to resolve the debts and how much it will cost.

- Prohibiting the corporation from being able to misrepresent things such as surcharges, success rates, and any other information that alludes to the impact of the debt relief services on the consumers credit report and credit history.

A number of debt relief agencies actually do what they say they are going to do, but other corporations like this one listed in the lawsuit above are dreadful and need to be regulated. The corporations that do what they state they do shouldnt have an problem with the new set of laws that are imposed on them. For the reason that the corporations already follow the regulations, any new rules will just mean that its leveling the playing field for the excellent corporations.
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