Myths vs Facts

Confronting Misconceptions About Debt Relief and Protecting Consumers with the Truth

Debt relief plays a vital role in helping consumers overcome serious financial hardship—but misinformation often clouds public understanding of how it works.

At ACDR, we believe in transparency, accountability, and education. Below, we set the record straight on common myths about the industry and the protections in place for consumers.

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    Myth: The Debt Relief Industry Is Unregulated

    The debt relief industry is unregulated, allowing predatory companies to operate without any consumer protections in place.

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    Fact: Debt Relief Is Heavily Regulated

    The industry is closely regulated by the Federal Trade Commission (FTC). In 2010, the FTC updated its Telemarketing Sales Rule (TSR) to prohibit upfront fees and require full transparency.

    Many states also enforce additional consumer protection laws, and ACDR goes even further by holding members to higher internal standards.

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    Myth: Debt Relief Companies Can’t Be Held Accountable

    There is no way to track whether a debt relief company is following the rules or negotiating in the best interest of the consumer.

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    Fact: Providers Are Audited and Held to Strict Compliance

    All ACDR member companies must follow FTC guidelines, disclose all fees and timelines, and undergo independent audits twice a year to confirm compliance.

    These requirements ensure accountability and consumer trust.

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    Myth: Consumers Lose Control When They Enter a Program

    Customers are forced to turn over their private financial information, trust, and future well-being to the debt relief company before their program begins and then have almost no power to back out of a debt relief program.

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    Fact: Consumers Remain in Full Control at All Times

    Consumers maintain complete control of their dedicated savings account, can accept or decline any settlement offer, and may leave the program at any time with no penalties.

    ACDR-accredited providers are required to honor this control throughout the entire process.

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    Myth: Debt Relief Is a Scam That Doesn’t Work

    Debt relief is just a scam that does not improve consumers’ financial well-being.

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    Fact: Debt Relief Delivers Measurable Results

    Debt relief helps consumers settle debts faster and for less. Most clients receive their first settlement within 4–6 months, and the average reduction is nearly 32% on settled accounts after accounting for fees.

    Consumers save $2.64 for every $1.00 in fees, according to independent studies.