Company’s Performance-based Programs are Fully FTC Compliant, While Some Competitors Go Astray
Los Angeles (Vocus/PRWEB) March 31, 2011 – Debtmerica, LLC, a professional debt settlement Company that recently restructured its business model to comply with new FTC regulatory standards, is pleased to report that consumers are very receptive to its new debt resolution programs. In the first quarter of 2011, Debtmerica realized a surge in demand by consumers for its performance-based debt settlement programs, a significant improvement over the receptiveness of former programs where consumers were required to pay up-front fees. The new contingency programs are more effective for clients, as savings funds are accumulated more rapidly to enable faster completion of creditor settlements.
The Federal Trade Commission (FTC) ruling which went into effect October 27, 2010 created a ban on upfront fees charged by debt settlement firms. This ruling was fostered by feedback from some consumers who were excessively charged debt settlement fees by a subset of firms but received little relief from their debts in return. Although this ruling protects consumers from firms that were taking advantage of people, unfortunately, it also hurt the good reputations and consumer perception of legitimate companies who actually worked very hard to deliver excellent results to their clients.
“At Debtmerica, our staff all participated in making sacrifices so we could continue to pursue our mission of helping Americans become debt free and remain so. To see that consumers are readily engaging in our new debt resolution programs and achieving faster settlements is a significant milestone,” says Harry Langenberg, managing partner and Chief Operating Officer.
With this new ruling in place, unfortunately many less stable service providers have sought sanctuary by partnering with law firms who claim exemption from the FTC rule and continue to assess substantial up-front fees to consumers through these so-called “attorney model” debt settlement firms. Given the inherent restrictions placed on legitimate service providers by the FTC rule, some service providers felt they had no other alternative than to work around the contingency fee constraints or to close up shop. Debtmerica believes that these “attorney models” are nothing more than a temporary loophole in the FTC rule and expects the FTC to scrutinize the service providers operating in this manner. Debtmerica is also a proponent of states adopting regulations consistent with the FTC ruling while also allowing firms to assess a fair fee for services rendered.
“Debtmerica has worked tirelessly to adapt to the new FTC rule and is not gambling that any loopholes in the law will successfully circumvent it. While Debtmerica was well prepared to weather the challenges in our industry, we are warning consumers to be very careful about engaging with other companies that have chosen riskier business models that may jeopardize their stability and the success of their client programs,” explains Jesse Torres, Debtmerica’s other managing partner.
About Debtmerica Relief
Debtmerica Relief, headquartered in Orange County, CA, provides assistance to families who are experiencing financial difficulties and hardship. Its focus on negotiated debt settlement provides a very powerful solution with the ultimate goal of helping its clients become debt free and remain so. To date, the Debtmerica Team has enrolled over 10,000 clients into debt resolution programs and helped clients get back on their feet financially.
A Member of The Association for Settlement Companies (TASC), Debtmerica was recognized in 2009 and 2010 as an Accredited Organization in Compliance with TASC Best Practices Standards. Debtmerica was honored in 2009 and 2010 as one of the “Best Places to Work” in Orange County by the Orange County Business Journal (OCBJ), and was also ranked #3 in the OCBJ’s “Fastest-Growing Companies” in Orange County. Additionally, Debtmerica made rank on Inc. Magazine’s 2009 and 2010 INC. 500/5000 list as one of America’s fastest-growing private companies.