Telemarketing Sales Rule (TSR)
FTC Guidelines for Credit Repair Services & Advance Fee Provision Compliance
Understanding the Telemarketing Sales Rule
Official Citation:
16 CFR Part 310 - Telemarketing Sales Rule. Enacted under the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. 6101-6108.
Key TSR Requirements
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Prohibits advance fees for credit repair
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Requires secure online enrollment
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Mandates specific service disclosures
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Regulates payment collection timing
Online Enrollment Process
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Digital contract requirements
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Secure payment processing
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No phone-based enrollment
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Transparent service terms
Recent TSR Enforcement Actions
FTC v. Lexington Law
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$12 million judgment imposed
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Charged advance fees before services
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Conducted phone-based enrollment
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Misrepresented service guarantees
2022: Credit Repair Cloud Case
FTC v. Credit Repair Cloud
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$3 million settlement reached
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Provided software enabling TSR violations
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Failed to prevent advance fee collection
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Promoted non-compliant business practices
FTC v. Alex Miller Credit Repair
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TSR violations in telemarketing practices
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Improper advance fee collection
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Non-compliant enrollment procedures
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Deceptive marketing allegations
TSR Compliance Requirements
Permitted Activities
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Post-enrollment communication
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Service progress updates
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Document collection assistance
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Client support services
Prohibited Practices
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Phone-based enrollment
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Advance fee collection
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Pre-service payments
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Verbal contracts
Start Your Credit Repair Journey
Official Citation:
16 CFR Part 310 - Telemarketing Sales Rule. Enacted under the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. 6101-6108.