subject: Telemarketing Debt [print this page] The telemarketing sector has handled the debt projects in a rather messy way. Many of the call centers flouted the rules led down by the Federal Trade Commission (FTC). The repeated violation of the telemarketing services laws has prompted the FTC to revise them. Now there are certain added restrictions on the BPO units that work with these projects. For example, the agents cannot charge the customers before actually putting their debts on the process of recovery. More transparency in the process of debt consolidation was necessary to bring out these projects from the dark, shady corners populated by fraudulent, conmen posing as agents. It's time for the purgation to happen in a way that reinstates the faith of the people in debt consolidation services. Let's find out about the new regulations and what went wrong.
The FTC has asked the BPO agents to inform the agents about how much they need to pay on a regular basis before the results start to show on their credit records. This was important from the consumers' point of view. Too many call centers were making the consumers pay toward consolidation and after several months, the hapless consumers saw no results. In fact, they found out that they were paying off a recurring simple interest maybe and had never touched the principal sum that they are indebted! Once you get into this trap, you can do only so much to expect things to change. Because many of these call centers function outside the legal jurisdiction of the country, you have no other choice but to write to them. The new FTC rule will ensure that the consumers are not placed in such a helpless scenario.
Another rule that the FTC has put into place is to inform the consumers that debt consolidation will have a negative effect on their credit report. You will be surprised by the number of citizens who don't know their credit and financial rules properly. They are regularly duped by the shady telemarketing firms that make them feel elated about settling their debt finally. In their joy, they go ahead and pay sums of money that don't help their debt cause. In fact, many of them are not aware that debt consolidation reflects poorly on the financial report of a citizen. If they apply for loans in the future, this can go against them and banks may deny them financial support because of poor credit report.
The FTC has asked call center agents to inform subscribers on how much they need to pay in order to get rid of their debt. Often, citizens keep paying an indefinite sum of money and the BPO agents do not inform them how much they have covered and how much is left. The new rule will force the agents to divulge the salient details to the citizens. They have a right to know because it's their money and they have to plan things out. Transparency in the process will only help consumers because people are powered by right to know their financial status.
