Under the federal rule, debt relief service companies:
• may not charge fees before settling or reducing a client’s credit card or other unsecured debt
• must meet five conditions if they require consumers to set aside funds for creditor payments into a dedicated account
• must make specific disclosures to customers about a settlement’s potential consequences and how long it will take to see its results
• must not misrepresent its success rate or falsely claim to be a nonprofit company.
The FTC’s guide to help businesses comply with the rule’s amendments is available online at www.ftc.gov.
Information about this and other debt elimination topics is available on the Attorney General’s website at www.texasattorneygeneral.gov.
