The amendments to the FTC's
Telemarketing Sales Rule (TSR) address unlawful practices that have
been occurring with increasing frequency in the telemarketing of
debt relief services, including for-profit credit counseling
services, debt settlement, and debt negotiation services. Based on
recent law enforcement actions, staff outreach to stakeholders,
analysis of complaint data, and other research, the Commission
believes that tailoring the TSR to address law violations in the
sale of debt relief services is warranted under the Telemarketing
Act to enhance consumer protection.
US Code:
15 USC 6101-6108 Name of Law: Telemarketing and Consumer Fraud
and Abuse Prevention Act
These amendments to the
Telemarketing Sales Rule (TSR) address the telemarketing of debt
relief services. These amendments define debt relief services,
prohibit debt relief providers from collecting fees until after
services have been provided, require specific disclosures of
material information about offered debt relief services, prohibit
specific misrepresentations about material aspects of debt relief
services, and extend the TSRs coverage to include inbound calls
made to debt relief companies in response to general media
advertisements. The amendments are necessary to protect consumers
from deceptive or abusive practices in the telemarketing of debt
relief services. The Final Rule requires specific new disclosures
in the sale of a debt relief service, as that term is defined in
§ 310.2(m). The disclosures will provide consumers critical
information before they enroll in a debt relief service. In
addition, new respondents will be subject to the existing
provisions of the TSR, including its general sales disclosures and
recordkeeping provisions. The required disclosures are necessary to
inform consumers of important information about the debt relief
services being offered. The recordkeeping requirements are
necessary to facilitate law enforcement by ensuring that debt
relief service providers retain records demonstrating their
compliance with the Rule.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
TSR '10 Suppl SS for Final Rule DR amendments FIN_mtd.pdf
Recordkeeping for live TM calls