Securities Law Updates | New Statutes, Regulations and Rules
August 26, 2010
FTC Amends Telemarketing Sales Rule to Prohibit Debt Relief Companies from Collecting Advance Fees
Amendments to the Telemarketing Sales Rule
16 CFR Part 310, BILLING CODE: 6750-01-S, 7/29/2010
Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.
“At the FTC we strive every day to make sure America’s middle class families get straight deals for their dollars,” Chairman Jon Leibowitz said. “This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees. Too many of these companies pick the last dollar out of consumers’ pockets – and far from leaving…
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