Association for Consumer Debt Resolution
Now that we have discussed a few available remedies for consumers who are challenged with managing debt, let's shift to organizations that are involved in the debt relief space. The Association for Consumer Debt Relief (ACDR) is the leading national association of debt relief companies. The ACDR's mission is to "educate consumers and policymakers about debt relief and its benefits, hold debt relief companies to the highest industry standards, and protect and expand access to accredited debt relief services nationwide." They hold their members to particular ethical and clear standards to protect consumers and maintain the debt relief industry reputation. The organization's Standards Committee, comprising industry experts and legal professionals, oversee member compliance, integrity and ethics. Companies that apply and gain accreditation through the ACDR have cleared the following standards and requirements.
Undergone a rigorous review of its operations, business practices, and consumer policies
Attest they fully comply with all applicable FTC regulations and relevant state laws.
Commit to transparent fee structures, clear communication, and fair credit treatment.
Participate in semi-annual third-party audits to verify ongoing compliance.
If a consumer is struggling to decide which debt relief organization to use, the ACDR member list is a helpful resource to search. A consumer can be confident that the member companies endeavor to provide quality services. Here is the member list on the ACDR website: https://acdr.org/member-list
In addition to the standards, the ACDR has a member Code of Ethics related to fee structures, client practices, data protection and FTC compliance. Three of the five codes of ethics stuck out to me because they directly impact the consumer's bottom line.
No upfront fees - Members may only charge fees after a settlement is accepted and at least one payment is made by the consumer.
Full transparency - Members must disclose expected timelines, estimated costs, and program limitations in plain language.
Client-first practices - Members must act in the best interests of the consumer, offering clear advice and maintaining open lines of communication
Industry advocacy for consumers and their finances is a great resource and benefit. Whether that advocacy is for banking, lending or insurance, it is important that consumers know how to weed through all the options to reach the best solution. I understand that regulatory entities bureaucracy can slow things down a tad. But if consumers can make sound decisions, it might be worth the slight delay.
That concludes our series on debt relief options. I've said it before, and I will say it again, no situation is without a solution. Let's bring it all into the light and talk more specifically to see what path works best for you. 50/70/100 still applies. What incremental steps can be taken on your road to debt freedom? Let's talk! @StudioMFin or letstalk@studiomfinancial.net. Until we meet, keep working on the change.