16 CFR Part 310 Telemarketing Sales Rule- Debt Relief Amendments #543670-00007

Submission Number:
Edward McTaggart
Initiative Name:
16 CFR Part 310 Telemarketing Sales Rule- Debt Relief Amendments
FTC 600 Pennsylvania Ave Washington DC 20580 September 17, 2009 Re: TSR and DSSA acts To Whom It May Concern: As a state licensed and bonded for-profit Credit Counselor for over 47 years, I am outraged that the Government once again is proposing laws to miss regulate our industry; AGAIN. A licensed and bonded for-profit Credit Counselor is NOT a Debt Settlement company or a Credit Repair company. We have won numerous awards for helping consumers. Your agency’s continued lack of understanding of how credit and finance companies work in the real world have caused our company to be sued and threaten multiple times. (Even by the Attorney General’s office because the language is so poorly written) Despite our trade association representatives at AADMO continued efforts the language of the law is flawed. Or someone else is providing the language to gain a competitive advantage in business. As a prime example: The CROA, Credit Repair Organizations’ Act, prohibits ANYONE from telling a consumer what will or will not help their credit. How, as a licensed credit counselor for over 47 years, could I ever answer any of my client’s questions without breaking the law? It is not possible! How could a car company selling a car tell a consumer that buying and paying for a car can build your credit? The proposed language states that the consumer would get the car first and then after the credit is built, without payment by the way, and then they would pay for the car. As you can imagine, a car dealer would be out of business if they had to wait 3 to five years for full payment, and so it is with credit counselors: To wait until the debt is “settled” takes a long period of time since credit counselor’s work with client’s long term to help them. We would not be able to continue helping clients if we had to wait 5 years for any form of revenue. If you believe that attorneys are not bringing suits to capitalize on your errors, you are wrong. Now the FTC and other government agencies are once again lumping in Licensed and Bonded for-profit Credit Counselors into Debt Settlement. This is wrong. Debt Settlement is wrong and hurting consumers just as Credit Repair was but your language in the law is not properly stated. In fact, non-profit Credit Counseling is currently under scrutiny not for-profit. Please give serious thought to exempting all State Licensed and Bonded Credit Counselors from you rulemaking decisions. Sincerely, Edward “Jerry” McTaggart President