The FTC Issued Enforcement Policy Statement on New Debt Relief Rule in the Telemarketing Sales Rule (October 27, 2010)

FTC Issued Enforcement Policy Statement on New Debt Relief Rule

October 27, 2010

The Federal Trade Commission ("FTC") has issued an enforcement policy statement regarding a new rule under the Telemarketing Sales Rule aimed at protecting consumers from debt relief firms charging upfront fees. Effective immediately, these firms are prohibited from collecting fees before settling or reducing a consumer’s credit card or other unsecured debt. However, the FTC has deferred enforcement of this rule for tax debt relief services while it clarifies whether tax debts qualify as "unsecured." During this period, tax debt relief services must still adhere to the FTC’s regulations, excluding the specific debt relief amendments. The FTC emphasizes that all debt relief providers must comply with the FTC Act, which prohibits unfair and deceptive practices.

For more information, see here:  https://www.ftc.gov/news-events/press-releases/2010/10/ftc-issues-enforcement-policy-statement-new-debt-relief-rule

These materials were obtained directly from the Federal Government public websites and are posted here for your review and reference only.  No Claim to Original U.S. Government Works.  These may not be the most recent versions.  The U.S. Government may have more current information.  We make no guarantees or warranties about the accuracy or completeness of this information, or the information linked to.  Please check the linked sources directly.