Well forget it, because it never happened. It's just the latest misinformation and outright falsehoods swirling around the debt settlement industry that continues to do a banner business in a miserable economy.
At least two press releases posted online in the last two months, by the same individual, proclaim the good news that the Credit Card Debt Settlement Act of 2010 makes credit card debt settlement a much more viable alternative.
But what exactly is the Credit Card Debt Settlement Act of 2010?
There is no such law, Frank Dorman, spokesman for the Federal Trade Commission, told ConsumerAffairs.com.
What about the radio commercial that claims a provision of the new CARD Act, which took effect earlier this year and ends many abusive credit card company practices, gives you the right to settle your credit card debt?
Not in there, Dorman said.
Making up news
The inaccurate press releases are published on Atomic5 and i-Newswire by FreeDebtSettlementAdvice.com, where you are invited to enter your name, address, phone number and email to get free debt help. The Columbus, Ohio address listed on the news release does not exist.
What does exist is a recent crackdown on the credit card debt settlement industry by the FTC. It may be that action that some in the debt settlement business hope to misrepresent to the public.
Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customers credit card or other unsecured debt.
Three other Telemarketing Sales Rule provisions to take effect on
September 27, 2010, will:
• require debt relief companies to make specific disclosures to consumers;
• prohibit them from making misrepresentations;
• and extend the Telemarketing Sales Rule to cover calls consumers make to these firms in response to debt relief advertising.
The rule is not being made to make it easier for consumers to settle their credit card debt, but to make it harder for them to get ripped off by companies promising they can help.
This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees, said FTC Chairman Jon Leibowitz. Too many of these companies pick the last dollar out of consumers pockets and far from leaving them better off, push them deeper into debt, even bankruptcy.
In the meantime, consumers should take information from debt settlement advertisements and "news" releases with a large grain of salt.
