TASC: Consumers Need More Financial Options
FTC proposal would eliminate debt settlement industry.
Madison, WI (PRWEB) November 3, 2009 -- Consumers struggling with debt would see their financial options reduced if the Federal Trade Commission's proposed changes to the Telemarketing Sales Rule (TSR) are passed, The Association of Settlement Companies (TASC) announced today.
The Association of Settlement Companies
The FTC is seeking to create amendments--including a ban of advance fees--that would effectively eliminate debt settlement as a viable option for consumers who are struggling with unsecured debt. TASC, which favors responsible regulation, sent a brief to the FTC with data that shows the economic value its member companies deliver to consumers enrolled in debt settlement programs.
"Debt settlement has been and should remain an option for the tens of thousands of consumers who are facing financial difficulties," Dave Leuthold, Executive Director of TASC, said. "Especially in this tough economic climate, consumers should have more financial tools at their disposal, not fewer."
Leuthold went on to point out that like most businesses in any industry, debt settlement companies would not be able to work for free for the better part of the settlement process, which typically takes three years. This is because "companies must have the capability to fund the significant amount of work that is involved prior to that final settlement," Leuthold said.
TASC, whose member companies are on pace to settle $1.1 billion of consumer debt this year, has been working actively on a state-by-state level to get fair legislation passed that promotes consumer protection. Leuthold and other TASC board members will work with the FTC to make sure consumers can still turn to debt settlement when they can't afford credit counseling or wish to avoid bankruptcy.
The FTC will play host to a public forum on Nov. 4. To view TASC's brief, please visit www.tascsite.org/pdfs/TASC_Comment_Letter.PDF.
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 www.tascsite.org.
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