FTC rule protects consumers from predatory practices
Effective October 27, 2010, for-profit companies that sell debt relief services over the telephone are prohibited from charging a fee before they settle or reduce a consumer’s credit card or other unsecured debt. The common practice of charging a fee in advance of any service being delivered often left well-intended consumers worse off than when they began.
Provisions of the FTC’s new Telemarketing Sales Rule also include the following (effective September 27, 2010):
- Debt relief companies will be required to make specific disclosures to consumers.
- They will be prohibited from making misrepresentations.
- The Telemarketing Sales Rule will be extended to cover calls consumers make to these firms in response to debt relief advertising.
MMI is a member of the For more information about the new Telemarketing Sales Rule, visit the FTC website.