Madison, Wis. (PRLEAK) November 4, 2009 – The Association of Settlement Companies (TASC) announced its intention to provide the National Association of Attorneys General (NAAG) with sufficient data in support of debt settlement being used as a legitimate financial tool for consumers who are in debt. This is in response to the comments that the NAAG submitted to the Federal Trade Commission.

Earlier forty attorneys general from the National Association of Attorneys General (NAAG) showed their support for proposed amendments to the Telemarketing Sales Rule by the Federal Trade Commission. This included a ban on advance fees, while the TASC is of the opinion that debt settlement is a feasible option for those unable to cope with unsecured debt. TASC believes that consumers need more financial options at their disposal during tougher economic times, and is in total support of responsible regulation.
According to Dave Leuthold, Executive Director of TASC, they will continue their efforts and work with lawmakers and attorneys general to get a fair legislation, as they have done in several states. The main objective for the formation of the TASC was to protect consumers and to clear any doubts and concerns raised by the attorneys general in their letter.

According to TASC's findings, debt settlement companies would find themselves working for free in the initial stages, in case a ban is imposed on any advance fees, since a typical debt settlement process can take up to three years. Moreover, there would be an ethical violation of the rules if debt settlement companies were made out to guarantee results in this manner.

Members of The Association of Settlement Companies (TASC) are likely to settle about $1.1 billion of consumer debt this year. According to Mr. Leuthold, several consumers that cannot afford credit counseling or wish to avoid bankruptcy turn to debt settlement of their unsecured debt.


About The Association of Settlement Companies
Founded in 2005, The Association of Settlement Companies (TASC) is the watchdog of the debt settlement industry. It promotes fair business practices and offers protection to consumers trying to cope with unsecured debt. The organization also lobbies for its members at state and national levels and conducts awareness initiatives to educate consumers on debt settlement. TASC members are required to comply with the association's bylaws that govern business practices and ethics. For more information on the association and on debt settlement log on to tascsite.org.