The FTC, Telemarketing, and Debt Relief

There has been a boom in the forming of debt relief companies after the Financial Crisis of 2007. Many of these companies started making telemarketing calls to consumers. Many of them were falsely representing themselves or were just out to rip off individuals who were being foreclosed on. The FTC has since started shutting these companies down as complaints pour in.

Last week the FTC offered its “final rule on the telemarketing of debt relief services”. The rule aims to help those consumers deep in credit card debt from becoming a target. The amendment to the Telemarketing and Sales Rule will prohibit debt relief companies from collecting advance fees for their services. It does actually say that consumers must set aside the funds which will eventually pay for the services. These dedicated accounts may only be required if the consumer meets certain criteria.

More information on the amendment and information on how telemarketing businesses in the debt relief industry will have to operation can be seen in the guide the FTC’s released regarding the event at http://www.ftc.gov/bcp/edu/pubs/business/marketing/bus72.pdf .