The CFPB is suing debt-relief firm Morgan Drexen for alleged illegal upfront fees and consumer deception.
Say so long to hefty advance fees for debt relief help. Beginning on Oct. 27, 2010, all for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card debt or other unsecured debt. This new rule comes courtesy of amendments to the
Starting today, for-profit firms that sell debt relief services to consumers over the phone, such as credit counseling, debt settlement or debt negotiation, must comply with new provisions in the Telemarketing Sales Rule, or TSR. Three amendments to the TSR taking effect Sept. 27, 2010, will: Require debt relief companies to make specific disclosures to