FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–Today, the American Fair Credit Council (AFCC) released a report detailing the significant and wide-ranging national impact of debt settlement activity to the U.S. economy and quantifying the total annual consumer benefit that debt settlement provides. The report, completed by John Dunham & Associates, determined that the debt settlement industry contributes $6.8 billion to the U.S. economy annually and saved American consumers more than $1.6 billion in 2019.
“The findings in this report again confirm what we have known for years in the debt settlement industry – our companies provide massive macroeconomic and consumer benefits,” said AFCC President Robby H. Birnbaum. “The debt settlement industry serves as a critical advocate for consumers, while delivering billions in economic benefits and supporting tens of thousands of jobs across the country.”
Debt settlement is a federally regulated industry that has helped hundreds of thousands of Americans reduce their unmanageable unsecured debts. By partnering directly with consumers and acting as their advocate in negotiations with their creditors, debt settlement has retired billions in debt and, along the way, saved Americans billions of dollars.
Other critical findings of the report describe the sizable ripple effect triggered by debt settlement in sectors across the U.S. economy. In its totality, the debt settlement industry employs more than 34,700 individuals around the country and generated more than $821 million in federal, state, and local taxes, while creditors participating in debt settlement programs received over $645 million in revenue that might otherwise have been delayed or not received at all.
The American Fair Credit Council (AFCC) is the national association of professional Consumer Credit Advocates. The AFCC, and its member companies, work to represent the rights of consumers struggling with the overwhelming burden of debt. The AFCC has developed a strict Code of Conduct centered on best practices designed to protect the rights of consumers and require member companies to follow stringent regulatory guidelines for operation. All AFCC members operate on a “No Advance Fee Model” and never charge a fee for services until a consumer’s debt has been successfully negotiated.