Friday, December 15th, 2017

Consumer Credit Counseling supports FTC's rule

Posted: Monday, November 1, 2010

Fort Wayne, IN – CCCS of N.E. Indiana, Inc applauds the Federal Trade Commission’s rule which took effect on October 27, 2010, that prohibits for-profit companies that sell debt relief services over the phone from charging a fee before they settle or reduce a customer’s credit card or other unsecured debt.

“Every day, consumers are bombarded with false and misleading ads on TV and radio for companies promising a quick and easy way out,” said Joe Schenkel, President of CCCS of N.E. Indiana, Inc.”  “However, instead of providing real solutions, the FTC has found that many of those companies charge huge fees in advance while providing little in the way of actual assistance to consumers.”

The Final Rule contains specific requirements for debt relief providers related to charging an advance fee before providing any services.  It specifies that fees for debt relief services may not be collected until:

· The debt relief service successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of the consumers’ debts;

· there is a written settlement agreement, debt management plan, or other agreement between the consumer and the creditor, and the consumer has agreed to it; and

· the consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.

CCCS of N. E. Indiana, Inc is a non-profit community service founded in Fort Wayne in 1965.  CCCS is committed to helping people gain control of their finances.  CCCS provides free budget counseling, Debt Management Programs, Financial Education, HUD approved Housing Counseling, approved Pre-File Bankruptcy Counseling and Education.