New FTC Rule Embraced by ADMA
The FTC recently imposed new regulations on the debt settlement industry intended to protect consumers and eliminate disreputable debt settlement companies.
North Huntingdon, PA, November 10, 2010 --(PR.com)-- ADMA Solutions, LLC, a debt settlement company, now offers results-driven programs that charge no fees unless a consumer saves money, consistent with the new Federal Trade Commission (FTC) rule.
The FTC’s new regulations include requiring specific disclosures, prohibiting debt settlement companies from charging upfront fees, and requiring that the savings account created for debt settlement clients remain independent from the debt settlement company and accessible to clients at all times.
ADMA is fully complying with the regulations, the last of which went into effect October 27, 2010. The company strongly supports the disclosure requirements and believes that fully-informed consumers make the best overall decisions about their best way out of debt. Moreover, ADMA’s debt settlement program included an independent, third-party savings account for their clients prior to the FTC’s ruling.
Much of the debt settlement industry, including The Association of Settlement Companies (TASC), was initially hesitant about the advanced fee ban because settlement companies provide many services to clients before settlements are reached (e.g., education services, budgeting tools, a third-party savings account, resources for dealing with aggressive debt collectors). Debt settlement clients understand it takes several months to negotiate a settlement, but now traditional debt settlement companies are not compensated until a settlement has been reached and a payment has been sent to creditors. However, ADMA was ready for the change and is complying with the rules.
“These regulations are a significant and financially difficult adjustment to the business model of most debt settlement programs, but we are fully complying with the FTC despite the initial hardship this decision places on our company,” explained ADMA’s President Amy Michalo-Rojas. “In the end, we are still able to help our clients settle their debts—the best outcome for all involved.”
Reaching mutually-agreeable debt settlements is the ideal outcome for debt settlement clients as well as for ADMA, which offers contingency fee based programs in which the consumer only pays for ADMA’s services after settlements are successfully negotiated and secured.
“With our contingency fee model, our clients know for certain that we will get paid only when we save them money,” said Michalo-Rojas.
As an active member of TASC, the industry’s main trade organization, ADMA’s commitment to honest business practices is guaranteed to its clients.
“We stand by our commitment to protect the interests of our clients throughout the course of their debt settlement program through our membership with TASC as well as with our own business practices,” said ADMA’s CEO Dave Leuthold. “We are happy to cooperate with the FTC’s efforts to protect all consumers from bad business practices that can harm indebted consumers when they are their most vulnerable.
For more information about the FTC’s rule, visit their website at http://www.ftc.gov/opa/2010/07/tsr.shtm. For more information about the debt settlement industry’s reaction to the ruling, visit: http://www.tascsite.org/index.cfm?event=IndustryNewsDetail&IndustryNewsID=103.
About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt settlement company providing debt negotiation and settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit www.ADMADebt.com.
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The FTC’s new regulations include requiring specific disclosures, prohibiting debt settlement companies from charging upfront fees, and requiring that the savings account created for debt settlement clients remain independent from the debt settlement company and accessible to clients at all times.
ADMA is fully complying with the regulations, the last of which went into effect October 27, 2010. The company strongly supports the disclosure requirements and believes that fully-informed consumers make the best overall decisions about their best way out of debt. Moreover, ADMA’s debt settlement program included an independent, third-party savings account for their clients prior to the FTC’s ruling.
Much of the debt settlement industry, including The Association of Settlement Companies (TASC), was initially hesitant about the advanced fee ban because settlement companies provide many services to clients before settlements are reached (e.g., education services, budgeting tools, a third-party savings account, resources for dealing with aggressive debt collectors). Debt settlement clients understand it takes several months to negotiate a settlement, but now traditional debt settlement companies are not compensated until a settlement has been reached and a payment has been sent to creditors. However, ADMA was ready for the change and is complying with the rules.
“These regulations are a significant and financially difficult adjustment to the business model of most debt settlement programs, but we are fully complying with the FTC despite the initial hardship this decision places on our company,” explained ADMA’s President Amy Michalo-Rojas. “In the end, we are still able to help our clients settle their debts—the best outcome for all involved.”
Reaching mutually-agreeable debt settlements is the ideal outcome for debt settlement clients as well as for ADMA, which offers contingency fee based programs in which the consumer only pays for ADMA’s services after settlements are successfully negotiated and secured.
“With our contingency fee model, our clients know for certain that we will get paid only when we save them money,” said Michalo-Rojas.
As an active member of TASC, the industry’s main trade organization, ADMA’s commitment to honest business practices is guaranteed to its clients.
“We stand by our commitment to protect the interests of our clients throughout the course of their debt settlement program through our membership with TASC as well as with our own business practices,” said ADMA’s CEO Dave Leuthold. “We are happy to cooperate with the FTC’s efforts to protect all consumers from bad business practices that can harm indebted consumers when they are their most vulnerable.
For more information about the FTC’s rule, visit their website at http://www.ftc.gov/opa/2010/07/tsr.shtm. For more information about the debt settlement industry’s reaction to the ruling, visit: http://www.tascsite.org/index.cfm?event=IndustryNewsDetail&IndustryNewsID=103.
About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt settlement company providing debt negotiation and settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit www.ADMADebt.com.
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Contact
ADMA Solutions, LLC
Amy Michalo-Rojas
1-888-499-2362
www.admadebt.com/
help@ADMADebt.com
Amy Michalo-Rojas
1-888-499-2362
www.admadebt.com/
help@ADMADebt.com
Contact
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