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 Q4 2023 recap…

By being a part of AADR, your company invests in an organization committed to educating consumers and policymakers about debt resolution and its benefits. Through our collaborative efforts this year and beyond, we have given the debt resolution industry a robust voice impacting the consumer financial debate nationwide while providing a community dedicated to moving debt resolution forward.

Here are some of the highlights from 2023.

This year, we have continued to move the ball forward to protect our industry and consumer access to debt resolution. Our strategic goal for government and regulatory affairs this year was to strengthen state policy work by providing insights and expertise on the industry to policymakers. As expected, we had a busy legislative calendar with legislation allowing debt resolution or making it unavailable to consumers in several states. We also continue to work with the California Department of Financial Protection and Innovation (DFPI) on its third registration proposal.

Opening New States to Debt Resolution:

In New Jersey, we are pushing to have a committee vote before the end of the year on our bill allowing debt resolution in that state. Our efforts are laser-focused on passing this legislation as the end of the session draws near in January.

We have also been pushing for the passage of legislation in Ohio, where the Ohio Senate president has committed to us that our bill will be approved by the end of the year, but AADR has heard similar promises before. If the bill allowing debt resolution in that state gets through the Ohio Senate, we expect its path through the House and to the governor’s desk to be smooth.

Protecting Consumer’s Access to Debt Resolution

In North Carolina, we spent much of the year again fighting a bill introduced by Rep. Julia Howard that would deny consumers access to debt resolution services. Although we have received reassurances from Republicans that they do not see a path forward for this legislation, the AADR continues to educate lawmakers about the drawbacks of the Howard bill.

We also continue to engage with the New York Attorney General’s (AG’s) office regarding the debt resolution industry. After they asked Assemblyman Paul Dinowitz (D) to introduce anti-debt resolution legislation this summer, we are working closely with the AG’s office to provide suggested amendments to the bill and to stay in close touch with the chairwoman of the Assembly Consumer Protection Committee, where the bill ultimately would be heard.

Last, the Wisconsin Department of Financial Institutions (DFI) is in the process of drafting a proposed rule on debt resolution. However, a timeline has not been provided after the agency fell behind schedule. The AADR, after sending a comment letter, is preparing several response options depending on the course DFI takes and the rule's content.

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 become a member of the American Legislative Exchange Council, a non-profit organization that helps state lawmakers and industry to work on legislative and regulatory matters. We have also briefed about three dozen GOP state legislators during a Republican State Leadership Committee meeting in August and are actively engaged with the Democratic Legislative Campaign Committee, the Democratic Attorneys General Association, and the Republican Attorneys General Association.

Along with the Allon Advocacy team, AADR CEO Denise Dunckel Morse met with several U.S. Senate Finance Committee members, as well as with members of the Senate Judiciary Committee, the House Ways and Means Committee, and the House Judiciary Committee. These meetings and other work resulted in the Senate Finance Committee Chair Ron Wyden (D-OR) requesting the Joint Committee on Taxation “score” the AADR’s tax proposal, which pushes for excluding forgiven debt from the scope of what is taxable by the government.

Looking Towards 2024

We fully expect the 2024 legislative calendar to be as busy as this year, if not more. The AADR has already begun work to expand our public policy work to additional states to ensure that all consumers have access to accredited debt resolution services. In 2024, the AADR will increase engagement in Oregon and Washington State, starting with relationship building in order to gauge folks' appetite for legislation that would open each state to debt resolution. Realistically, we are looking at the 2025 legislative sessions to launch legislation in these two states.

In Colorado, the Department of Regulatory Agencies (DORA) completed its statutorily mandated examination of its current debt resolution regulations, and it is clear the legislature will re-open the matter next year. The AADR will be carefully watching and taking action in the state as necessary, particularly against any potential for a fee cap.

AADR’s strategic goal for public affairs in 2023 was to communicate that debt resolution provides consumer value by being an alternative to bankruptcy. We supported government and regulatory affairs in key states by launching a strategic public affairs effort to educate policymakers, regulators, and other stakeholders on the benefits of debt resolution. In 2023, we engaged with federal regulators, including inviting a CFPB representative to speak at our fall conference. We have also deployed consumer testimonials in several states to help policymakers better understand the benefits of debt resolution. As a component of the rebrand, we launched a new website that is easier for stakeholders to navigate and learn more about our industry. We also partnered with a financial education non-profit to help K-12 students and their families learn more about financial education, helping them make better financial decisions.

Corporate Responsibility: Building Financial Literacy

To celebrate Financial Literacy Month, the AADR, along with several member companies, made a significant contribution to the Council for Economic Education, which equips K-12 students and their families with the tools and knowledge of personal finance and economics so that they can make better decisions for themselves, their families, and their communities. AADR member companies contributed $50,000 to CEE in April, which was matched by a $25,000 contribution from the AADR for a combined total of $75,000 donated by the debt resolution industry. We look forward to our continued partnership with CEE in 2024.

This year, the AADR was engaged with its members through several conferences, webinars, and through our social media channels. The Spring Conference at the Four Seasons in Orlando was one of our largest and included a session on customer service by the Disney Institute that was engaging, lively, and informative. At our Fall Conference on beautiful Coronado Island in San Diego, we enjoyed networking happy hours, an opening reception by the pool, and a closing gala that combined a spectacular view with a fun evening. In addition, we heard from speakers on various topics, including behavioral science and consumer financial decision-making, artificial intelligence, and the Federal Communications Commission’s governance of financial institutions’ marketing practices. Click here to read our full recap.

Throughout the year, regular webinars kept AADR members up to date on the latest in the debt resolution space by providing industry updates and teaching social media best practices. Each quarter, the AADR hosted a webinar on government affairs so members could stay aware of the most pressing issues we are facing in the debt resolution space, as well as the opportunities we are pursuing. 

As I look back on 2023, I can't help but be energized by all we have accomplished this year. We are closer than ever to passing legislation allowing debt resolution in two states, and we once again stopped legislation in North Carolina that threatened our industry.

I want to thank our members and Executive Board of Directors for the trust and support you give us as we work toward the shared goal of ensuring consumers in every state have access to high-quality debt resolution services. Although the AADR has changed over the last year, including a new name, new brand, and new faces, some things stay the same, like our commitment to advocating for debt resolution and providing our members with timely information and benefits. I look forward to 2024 and the many opportunities ahead of us and to working with you to protect and expand our industry.

Last, I want to personally recognize the many important contributions two of our long-time board members have made to the industry. Bob Linderman and Kristie Bender are retiring from the AADR and the AADR Executive Board, respectively. Both were instrumental in building the American Fair Credit Council over the last decade and in paving the path for the future of the industry and the American Association for Debt Resolution.

All my best for a happy and safe holiday!

Denise Dunckel Morse

CEO, AADR

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.