Debt Settlement Industry Addresses Concerns of Attorneys General
TASC provides data to NAAG to show debt settlement as viable option for consumers
Madison, Wis. (PRWEB) November 4, 2009 -- The Association of Settlement Companies (TASC) announced today it is providing data to the National Association of Attorneys General (NAAG) to explain how debt settlement is a legitimate financial tool for consumers in debt in response to comments NAAG submitted to the Federal Trade Commission.
The Association of Settlement Companies
Forty attorneys general collectively wrote in support of the FTC's proposed amendments to the Telemarketing Sales Rule--including a ban of advance fees--that TASC believes could effectively eliminate debt settlement as a viable option for consumers struggling with unsecured debt. TASC supports responsible regulation and believes that, especially in this tough economic climate, consumers should have more financial options at their disposal, not fewer.
"TASC was formed to protect consumers and curb many of the concerns raised by the attorneys general in their letter," Dave Leuthold, Executive Director of TASC, said. "We have worked hard with lawmakers and attorneys general in many states to get fair legislation passed, and we will continue to do so."
TASC noted that imposing a prohibition on collecting any fees prior to securing a settlement would essentially require debt settlement companies to work for free for the better part of the settlement process, which typically takes three years. Furthermore, making compensation dependent upon securing a settlement would turn the debt settlement company into a guarantor of results, an ethical violation.
TASC member companies are on pace to settle $1.1 billion of consumer debt this year. Consumers with unsecured debt often turn to debt settlement when they can't afford credit counseling or wish to avoid bankruptcy, Leuthold added.
The FTC will play host to a public forum on Nov. 4. To view TASC's brief, please visit tascsite.org.
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 tascsite.org.
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