Women Legislators Support USOBA Debt Settlement Services Act, Reject ‘Advance Fee Ban’

The National Foundation for Women Legislators’ (NFWL) National Policy Committee on Business, Housing & Economic Development passed a resolution this week in support of the United States Organizations for Bankruptcy Alternatives’ (USOBA) Debt Settlement Services Act. The NFWL has called for state and federal regulation of the debt settlement industry based on the provisions of the Act, which provides strong consumer protection while preserving the rights of ethical debt settlement companies.

USOBA, a trade association dedicated to the advancement of consumer protection in the debt settlement industry, developed the Debt Settlement Services Act to provide nationwide and uniform transparency to the debt settlement industry. The Act mandates a registration or licensing of debt settlement providers within each state and encourages certification in one of two debt settlement trade associations. It also requires specific fee disclosures, designed to ensure that consumers are empowered with information about the programs offered, and rejects any “advance fee ban” in favor of more reasonable limits on fee collection.

“The NFWL’s support confirms the important balance that the Debt Settlement Services Act strikes,” said USOBA Executive Director Jenna Keehnen. “The USOBA and NFLW recognize that debt settlement is an important and viable option for consumers facing considerable financial hardship, and one that needs transparent operations and government-supported standards.”

The NFWL expressed its support of the Act as a response to current economic constraints, including the unprecedented debt challenges many American families are facing due to unemployment, unexpected health emergencies and other financial struggles.

"Consumer protection is incredibly important, and our elected women want debt settlement to remain an option for their constituents,” said Robin Read, President of NFWL. “They understand the need for different options based on personal circumstance, and the importance of legislation that doesn’t limit those options."

About USOBA

USOBA is dedicated to providing its member companies with important, industry-related information, including compliance requirements, as well as advocating on behalf of its membership for fair and appropriate industry regulation that maintains the utmost in consumer protection. USOBA members are provided a USOBA State Law Summary guide, the only one of its kind in the industry, to better ensure and promote national compliance. This guide contains the laws and regulations, state by state, and has been reviewed by regulators and legislators. For further information, please visit www.usoba.org.

About the National Foundation For Women Legislators, Inc. (NFWL)

Through annual educational and networking events, the National Foundation for Women Legislators supports women legislators from all levels of governance. As a non-profit, non-partisan organization, NFWL does not take ideological positions on public policy issues, but rather serves as a forum for women legislators to be empowered through information and experience.