The Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking to amend the FTC's Telemarketing Sales Rule (TSR) to address the sale of debt relief services (e.g., credit counseling, debt management plans, debt settlement, and debt negotiation). The proposed amendments would, among other things:
► Define the term "debt relief service;"
► Ensure that telemarketing transactions involving debt relief services are subject to the TSR, regardless of the medium through which such services are initially advertised, by making the general media and direct mail exceptions to the TSR unavailable to debt relief services telemarketers;
► Mandate certain disclosures and prohibit misrepresentations in the telemarketing of debt relief services; and
► Require full performance and documentation to the consumer before a debt relief services company requests and/or receives payment for debt relief services.
The FTC is seeking written comments on the proposed amendments, which are due by Friday, Oct. 9, 2009. At the end of the comment period, the FTC will hold a public forum to discuss the proposed amendments.
For a copy of the notice, click here.