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 (ÂTSRÂ) 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 TSRÂs 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 Âdebt 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