Welcome to the American Association for Debt Resolution's quarterly newsletter. We have a new logo and a new look but the same informative content including updates, the latest on our advocacy efforts, member and employee spotlights, and more. Before you read any further, remember you can get DAILY updates by engaging with us on X (formerly Twitter), LinkedIn, and Facebook.

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Now, for our updates for Q3 2023…

Registration is open for our 2023 Fall Conference at the Loews Coronado Bay in San Diego, Calif. Click here to join us Oct. 23-25, 2023, for our first conference as the American Association for Debt Resolution!

There are many reasons you should join us next month. We’ll have ample opportunities to network, a full exhibitor hall, and the latest news about what is going on at the Consumer Financial Protection Bureau. We also have informative sessions scheduled that will tackle:

• The Promise and Pitfalls of AI: Congress, consumers, credit card companies… everyone is talking about artificial intelligence (AI), but what impact will this tool have on the financial services sector?
• Outsourcing Done Right: People living with unsecured debt are in a vulnerable position. They rely on AADR member companies for sound advice, personalized care, and even a compassionate ear. How can our industry offer all these benefits when an ocean separates call centers and consumers?
• What to Expect from Election 2024: Steve Boms will sit down with Cook Political Report’s Amy Walter to discuss all things political, including what we can expect in the presidential, congressional, and statehouse races next fall – and what it all might mean for our industry.

What's new about this conference?

This year we will close our fall conference with a closing reception and gala that includes food, music, and more! You won't want to miss it.

Early bird pricing ends soon, so don’t waste time. Register now using this link.

As an exhibitor or sponsor of the AADR Fall Conference, you'll be able to advance your brand and support the AADR. As part of the Exhibitor Showcase, you'll be in front of conference attendees during breakfast, built-in session breaks, and cocktail hours. This is a great opportunity to increase your visibility at the conference.

For more information, please contact Karin Stragand at karin@aa4dr.org or click here.

Why should state lawmakers embrace debt resolution? Our CEO, Denise Dunckel, answered this question recently in an American Banker op-ed.

Denise noted that, according, to the Federal Reserve, credit card debt, which now totals nearly $1 trillion, is at a record high at a time when the average interest rate is 21%. Overall, consumer debt has blown past $17 trillion for the first time. She argued, “When the situation becomes dire, families need options. Bankruptcy is a way out for some, but it does have drawbacks, including the expense of hiring a lawyer. Likewise, hopping from one credit card to another, each of which comes with its own set of fine print, is often only a band-aid.”

Denise also noted, “In the vast majority of U.S. states, debt resolution provides a vital relief option. For some, debt resolution can be another route to financial recovery that also saves Americans more than $1 billion each year. The debt resolution industry is regulated by the Federal Trade Commission, and companies that are certified by the American Association for Debt Resolution (AADR) never charge a fee until after a consumer's debt is negotiated, the consumer chooses to accept the settlement and a payment has been made toward that balance.” Click here to read the full op-ed. 

As part of our rebrand, AADR is updating its member records to ensure all members are authorized under the AADR moniker. In August, your team received two documents that must be completed and returned to AADR in order to receive the new AADR member badges and logos. The two documents are:

• An updated “AADR Membership Update”, which ensures AADR can reach the appropriate persons within your company regarding membership and other AADR matters.
• An updated "AADR License Agreement", which will ensure your company has the authority to use the new AADR logo.

Once these documents are completed and returned to AADR, you’ll receive the new AADR member logos for your website and marketing materials.

Contact Karin Stragand if you need these materials.

This summer, AADR announced Access50, a program to enhance the debt resolution industry’s government and regulatory affairs work in all 50 states. As part of the effort, AADR has begun more aggressive advocacy efforts on behalf of the industry, particularly in Washington, DC. In August, we briefed about three dozen GOP state legislators during a Republican State Leadership Committee meeting. We are also actively engaged with the Attorney General in New York.

As part of our increased advocacy efforts, we are also expanding the AADR team by adding three regional government relations managers.

In the meantime, check out these updates from Washington, DC and the 50 states:

Federal Engagement on Student Loan Bankruptcy and 1099 Issue. The AADR has outlined two federal priorities: implementing more uniform eligibility for federal student loans in bankruptcy and requesting the Government Accountability Office (GAO) to quantify the impact of excluding from taxable income or forgiving student debt for consumers in financial hardship. AADR and its government relations team have already had positive meetings on these matters. Indeed, on the student loan issue, both Democrats and Republicans have said the recent Supreme Court decision that threw out the Biden student loan forgiveness initiative has created more of an appetite for this issue. Additional meetings are planned for September on both issues.

New Jersey. As a reminder, in June, the New Jersey Senate unanimously approved legislation that would make debt resolution available in that state. The next step is to get the bill referred out of the Assembly Consumer Affairs Committee and into the Financial Institutions and Insurance Committee, where our co-sponsor is the chair. It is expected that committee referral will take place this fall, which means the bill will be referred out of that new committee once the legislature reconvenes. Once that process takes place, the bill will need to be considered by the State Assembly.

New York. A new bill that would require any debt resolution company doing business in New York to obtain a license as a budget planner was introduced this summer in the State Assembly. The legislative session is over, so this bill cannot be heard until next year’s session at the earliest. AADR is convening a meeting in September with the Attorney General’s office, which is where the legislation originated.

North Carolina. State Rep. Julia Howard’s bill was never referred out of the Senate Rules Committee. Accordingly, the AADR has once again killed Rep. Howard's bill for another session.

Ohio. The AADR government relations team has reached an agreement with the State Senate President that should allow our legislation to be voted on by the Senate’s committee of jurisdiction in September.

Wisconsin. The Department of Financial Institutions had a preliminary hearing in July in advance of a regulation that they intend to propose later this fall. The AADR submitted a comment letter and awaits the proposed rule, which is expected sometime this fall. 

Please join us in welcoming Stacey Silva, AADR's new head of compliance. In this role, Silva will create and oversee AADR standards, work with member companies as they adhere to all federal and state laws, and make sure AADR standards are in the best interest of consumers and the industry. She also will ensure the industry has best-in-class auditing practices in place.

Silva joins AADR from Wells Fargo where she served as a senior vice president. At Wells, Silva created and led the risk and compliance program for the corporate communications division. Prior to Wells Fargo, Silva was a senior advisor at the Federal Housing Finance Agency. Silva has served at the highest levels of government, including at the White House, the U.S. Department of Commerce, and the U.S. Small Business Administration.

Please say "hi" to Stacey when you see her at the Fall Conference.

AADR Welcomes New Members

Join us in welcoming …

We are excited to welcome EVVO Financial as an affiliate member.

A premium loan marketplace portal, EVVO’s customers earn industry leading commission packages and monetize in a way that fits their unique business practices; cross sell their own products while presenting partners’ products; and finance their own products and services. Visit them at https://evvofinancial.com.

Our new website includes a blog that we will update regularly with interviews, articles about best practices, and other information that affects the debt resolution industry. Let us know if there is a topic you’d like to see covered. In the meantime, check out the blog post on the AADR rebrand and what our enhanced mission means for your companies and the consumers you serve!

The AADR Quarterly Newsletter is intended for members of the American Association for Debt Resolution, is for informational purposes only, and is not intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice.