The Federal Trade Commission issued a final rule Thursday that prohibits for-profit debt servicing companies to collect up-front fees that cost consumers millions every year. 

The rule, which will take effect Oct. 27, affects companies that sell debt relief services over the telephone might no longer charge a fee before they settle or reduce a customer’s debt.

"I applaud the FTC for adopting this new rule to protect consumers from the scourge of unscrupulous debt settlement companies," said Senate Commerce. Science and Transportation Chairman Jay Rockefeller (D-W.Va.) said in a statement. "From now on, debt settlement companies that take huge upfront fees or misrepresent the amount of money they can save consumers will be subject to substantial civil penalties."

Sen. Blanche Lincoln (D-Ark.) on Thursday urged quick action on fixing the estate tax, which is scheduled to return in about five months. 

"I think it's something that has to be done, and it should be done sooner rather than later," she told reporters.

The House is slated to vote on legislation later Thursday that encourages foreign investment in U.S. real estate by doubling the amount of foreign capital that can be invested in publicly-traded Real Estate Investment Trusts (REITs). 

The bill is sponsored by Rep. Joseph Crowley (D-N.Y.), who has argued his proposal will open revenue streams to real estate investments that continue to suffer in the current economic climate.  

Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) continued sparring over amendments.

Hilary Rosen, former chairwoman and CEO of the Recording Industry Association of America, is joining SKDKnickerbocker, according to a statement put out by the firm Thursday.

Rosen will be a managing director at the firm, where Anita Dunn is a principal. Dunn was part of President Obama’s inner circle during his 2008 campaign and recently served as White House communications director. 

“SKDKnickerbocker is uniquely placed to grow its public affairs practice both in Washington and in New York, and it’s a bonus to work with longtime friends and colleagues,” Rosen said in the statement.

Rosen was previously in charge of the Brunswick Group’s Washington office, a public relations firm. She also was political director of the Huffington Post during the 2008 election.  

The National Association of Manufacturers on Thursday urged House members to oppose legislation that increases taxes on U.S. multinational companies and is expected to be voted on later Thursday. 

Ironically, the bill — the Investing in American Jobs and Closing Tax loopholes Act of 2010 — was introduced as part of Democrats’ “Make it in America” agenda, a strategy that seeks to bolster the country’s manufacturing sector. 

But Dorothy Coleman, NAM’s Vice President of Tax and Domestic Economic Policy, said the bill would do her industry more harm than good. 

A group of some of the country’s largest financial, technology and manufacturing interests warned President Obama on Wednesday that higher taxes on capital gains and dividends would cost thousands of jobs, “stifling the recovery.”

The Alliance for Savings and Investment praised the administration for seeking to keep the tax rates low instead of allowing them to revert to much higher rates by next year. If Congress does not act, capital gains rates would rise from 15 percent to 20 percent for most filers, and dividends rates would be taxed at the marginal income rate, or as high as 39.6 percent.

The alliance — including the U.S. Chamber of Commerce, Verizon, Altria, UPS and others — wants to cap the tax rates at 15 percent for dividends and capital gains.

“An extension of these rates would provide much needed certainty to businesses, families and retirees who now face the threat of a looming tax increase during this time of continued economic and market uncertainty,” the group wrote in a letter to the president.

The scheduled tax increase on capital gains and dividends at the end of the year will cause an 8.6 percent drop in the Standard & Poor’s 500 Index, according to a report by Barclays Capital.

New claims for unemployment benefits fell last week, signaling an easing of layoffs but still reflecting a weak job market. 

First-time claims dropped by 11,000 to a seasonally adjusted 457,000, as the economy continues its slow recovery, the Labor Department said Thursday.

During the past few weeks, claims hit their lowest level since September 2008 as factories remained open during the summer months. 

General Motors and other manufacturers had reported fewer temporary layoffs but those changes have evaporated from the data, according to a Labor Department analyst.