American Fair Credit Council Announces the 2020 Regan Report

Study Examines the Economic Impact of Debt Settlement on Millions of American Consumers

Fort Lauderdale, Florida, February 16, 2021 – The American Fair Credit Council (AFCC) today issued a new independent report illustrating the abundant benefits provided by debt settlement to the millions of consumers who have chosen to take command of their financial futures. By analyzing the outcomes of 11.4 million individual accounts, the report, the fourth in a series overseen by Greg Regan of Hemming Morse LLP, and peer reviewed by Harvard Professor Will Dobbie, found that debt settlement provides, on average, $2.64 in consumer savings for each $1.00 in fees assessed.

“Debt settlement consistently delivers enormous benefits for consumers in desperate need of debt relief,” said AFCC CEO Denise Dunckel. “As tens of millions of Americans face the economic uncertainty created by the pandemic, this independent report exemplifies how debt settlement serves consumers in financial hardship each day by offering significant and measurable financial benefits.”

This latest iteration of the “Regan Report” also quantifies other benefits debt settlement provides to Americans struggling with unsecured debt. Among those who join a debt settlement program, three out of four will have settled at least one account within the first four to six months after enrollment. In addition, nearly all offered settlements – over 98 percent – result in a decrease of the client’s debt that is greater than the accompanying fees, meaning each settlement achieved by debt settlement providers delivers significant financial benefits to consumers.

Debt settlement, which has helped millions of Americans reduce their unmanageable debt burdens, is strictly regulated by the federal government. As an additional layer of consumer protection to these existing federal guidelines, all members of the AFCC abide by a stringent code of conduct and accreditation standards, under which AFCC members have settled billions of dollars of unsecured debt and, along the way, saved Americans more than $1.6 billion every year.

To view the full report, click here. To learn more about how debt settlement works to help consumers facing financial hardship, click here.

About the American Fair Credit Council

The American Fair Credit Council (AFCC) is the national association of professional debt settlement companies. The AFCC and its member companies work on behalf of consumers struggling with overwhelming burdens of unsecured debt to settle those debts for less than their full balance. The AFCC has developed a strict Code of Conduct centered on “best practices” designed to protect the rights of consumers and requires 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.