AICCCA Press Release

AICCCA Works With FTC on New Rule Protecting Consumers from Unfair Debt Settlement Practices

Fairfax, VA - July 30, 2010 — Association of Independent Consumer Credit Counseling Agencies (AICCCA) applauds the efforts of the Federal Trade Commission in issuing its Final Rule amendments to the Telemarketing Sales Rule. The new provisions will take effect in September and October of 2010 and provide much needed protections for consumers who seek debt relief from credit card debt.

"AICCCA provided input on the new rule prohibiting debt relief companies from charging up-front fees and are very pleased with the additional consumer protections included," said Dave Jones, president, AICCCA. "Consumers struggling with credit card debt can now be assured that if they choose debt settlement as a solution for their problem debt they will be treated fairly."

AICCCA encourages consumers seeking debt relief to become familiar with the consumer protections provided under the Final Rule:

• No upfront fees. Fees can only be collected after a successful change in terms of at least one debt. In addition, there must be a signed agreement between the consumer and the creditor and the consumer must make at least one payment to the creditor per the agreement.



• Dedicated accounts for fees and savings must be owned by the consumer. Specific accounts set up for accumulating savings to satisfy a settlement must now be maintained in an insured bank or other institution and must be accessible to the consumer for withdrawal of funds at any time without penalty.



• Companies must disclose how the service works, including time needed for results, cost and consequences of debt relief services, before an agreement is signed. The Final Rule also prohibits misrepresentations in advertising such as success rates.

Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.