Industry Group Brings Together Debt Relief Factions

Current Members: Industry Group Brings Together Debt Relief Factions (cont.)

Current members are:

Active Debt Solutions
Care One
Cambridge Credit Counseling
CESI Debt Solutions
Consumer Recovery Network
Debt Solutions Network
New Era Debt Solutions
Oak View Law Group

New Era Debt Solutions, a for-profit debt settlement firm, was formerly a member of an industry trade group called The Association for Settlement Companies (TASC), but parted ways with them. New Era co-founder Alex Viecco explains, “When the FTC passed the TSR ruling (debt relief rules), it was a great day for consumers. However, rather than to comply, many companies started to seek ways around the law and looking for ways to charge up-front fees. This was the catalyst for the coming together by a few companies that wanted to save this industry and continue to make this option available to consumers.”

Critics may still wonder if this isn’t just another case of the fox guarding the henhouse. It’s a fair question. And if I didn’t know Rhode and the members I’ve quoted so well, I would probably wonder the same thing. But they haven’t been afraid to speak up about problems in their industry before, so I can’t imagine that changing now.

[Consumer Resource: 14 Questions to Ask a Debt Settlement Company]

Micheal Bovee, founder of Consumer Recovery Network, for example, says “I have long been critical of business practices and marketing claims used by debt relief service providers. My criticisms center on what I see as an industry guided more by profit than by a true commitment to deliver products and services that are of maximum service to individuals and families struggling financially, and who need a true partner in debt relief. The debt relief industry is in need of change and innovation. The AACC provides the opportunity to lead by example and accomplish much of what is needed.”

What this small group can accomplish remains to be seen, but the fact that everyone is in the same room talking together is a good sign. When consumers reach out for help with their debt, the last thing they need is to be caught in crossfire.