New Era Debt Solutions Backs FTC Ban on Upfront Fees With Enthusiasm
Last week the Federal Trade Commission announced its breakthrough FTC regulation aimed at protecting unsuspecting consumers from unscrupulous practices by some debt relief and debt settlement companies. Although surprising to some, New Era Debt Solutions had a one-word response: “Finally!” Among other things, beginning October 27, it will be illegal for companies to charge any fees before a debt is settled, and New Era Debt Solutions feels this is the way business should be done.
The FTC regulation became necessary due to the recent unfortunate trend among most debt settlement companies to charge their settlement fees upfront: before any steps are taken to settle their customers’ debt and often without the customers’ knowledge. The result for these customers has been longer settlement times, shortage of funds available for settlement, and an increased risk of aggressive collection tactics by collectors. In many cases customers found themselves in worse shape financially and had to file for bankruptcy. Unfortunately the unscrupulous companies were still paid the fees even though in many cases the work was never performed.
“It was easy for us to comply with the new FTC regulation because we have always had a performance-based fee structure,” said Dan Smith, president of New Era. “It is never a good idea for anybody to pay up front for services they have not received. I wouldn’t do it and I wouldn’t ask our customers to do it either.”
New Era Debt Solutions, a national leader in providing consumers and small businesses financial relief through debt settlement, immediately announced it is in complete compliance with the new FTC ruling.
New Era Debt Solutions is also unique because they guarantee results. If their customers do not save at least 25% off their balance then New Era does not charge a settlement fee on that account.
“If we can’t save our customers money then we don’t deserve to be paid, “said Alex Viecco, vice-president and co-founder of New Era. “We need to earn our pay and we do it every day.
New Era Debt is one of the oldest and most experienced debt settlement firms having settled over $155,000,000 of debt, saving our clients millions of dollars and years of monthly payments.”
Consumers interested in learning more about New Era’s uniquely successful debt settlement programs can request a free consultation by visiting the New Era Debt Solutions website.
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