SOURCE: A New Horizon

Credit counseling, debt consolidation, Credit Card Debt

November 22, 2010 05:00 ET

New Federal Rules Governing Debt Management Take Effect

Many Debt Relief Companies May Not Be Compliant

FT. LAUDERDALE, FL--(Marketwire - November 22, 2010) - Americans struggling with debt continue to turn to debt relief companies rather than bankruptcy for solutions. Last month new regulations in the form of the Telemarketing Sales Rule or TSR were introduced by the Federal Trade Commission designed to crack down on large upfront fees, but industry experts warn that many debt management and debt settlement companies will not comply with the new rules. A New Horizon Credit Counseling Services, a Florida nonprofit credit counseling organization offering debt management plans that are individually designed for each client, has never charged large advance fees and advises that consumers should only choose a company that charges, as they do, the small fee allowed by the laws in the state in which they reside.

"Choosing a company to advocate for you with your creditors and design a debt management plan that will repay your debts in full while not severely impacting your lifestyle is an important decision; why would you want to choose a company that begins the relationship by breaking the law and taking advantage of you," said Steven Stark, COO and General Counsel of A New Horizon. According to Stark, A New Horizon is fully compliant with the FTC's new regulations, which ban upfront fees and require extensive disclosure statements.

"Other criteria to use when evaluating a reputable company should include checking if their credit counselors are certified and that the organization itself is certified with a recognized organization such as the International Organization for Standardization (ISO); making sure the agency is licensed; selecting a company with a long history; avoiding high upfront or monthly fees; and of course getting everything in writing," adds Stark.

The new regulations requiring disclosure statements came in to effect in September 2010, and the upfront fee ban began on October 27, 2010. Industry experts agree that debt management can be beneficial for consumers, but caution that clients should ask companies whether or not they are fully compliant with these new rules before agreeing to enter their programs.

A New Horizon Credit Counseling Services, Inc. has helped thousands of consumers across the nation repay their debt. For more information about their debt consolidation programs, contact Stuart Lieberman 1-800-556-1548 x1126. They can also be found on the web at http://www.anewhorizon.org.

Contact Information

  • Contact:
    Stuart Lieberman
    1-800-556-1548 x1126