With Mayors, Senators and Attorney Generals hot on the trail of unregulated debt settlement companies that have seemingly grown vitally by setting up debt settlement affiliates, the end looks near. As soon as next week or at latest June 15th 2010, settling your clients debt may be a thing of the past. Talk about the rug being pulled out from beneath you if you’re still dependent on the remaining 20 debt settlement “green states”. Their claim, explained in the Reader’s Digest version; debt settlement sales agents promoting debt settlement services have been recorded saying, “stop paying your credit cards, I can settle your debt for 25 cents on the dollar.”
Now think about it, stock brokers, financiers, real estate agents, etc. all have to be licensed and regulated as a means of protecting the public, so why aren’t these phone terrorists? There are unscrupulous telemarketers being taught to read scripts who have no idea of the impact that settling one’s debt can have on their credit rating, tax consequences, etc.
Sen. Charles E. Schumer (D-N.Y.) is planning to introduce a bill this week that would prohibit the debt settlement industry’s advance fees and cap the total amount charged. It would also allow consumers to cancel the program and receive a refund.
It would probably be in your best interest that your debt settlement sales agents weren’t claiming to be affiliated with government agencies or federal stimulus programs, as they too have been recorded by Federal Agencies. Even emails are turning up with copies of sales scripts prompting sales agents to tell prospective clients that they’ve been monitoring their credit score and it’s dropped rapidly in the last few months when in fact, this is anything, but the truth. People’s lives are on the line and when a confident sales professional equipped with the answers to the questions he already knows the clients is going to ask, it’s apparent who has the upper hand.
At this point, if you’re still hard wired for the debt settlement business vs. the attorney based debt resolution program, you might find yourself being frowned upon by friends and business associates, as daily news stories are being publicized by major periodicals like Reuters, The New York Times, The Washington Post, CNN, CNBC, ABC, NBC, FOX just to name a few, exploiting each and every word being said about the debt settlement industry.
Let’s get specific. “It is appalling beyond words,” Sen. John D. Rockefeller IV (D-W.Va.), who heads the committee, said at the hearing. “These debt-settlement companies are kicking people when they are down.” It’s no wonder that the American Reputation is known for cannibalizing each other and will likely find prey in the next up and coming industry to be.
Friday, April 23, 2010, “A government investigation into the burgeoning debt-settlement industry has found that many firms misled consumers by claiming to be affiliated with federal stimulus programs and exaggerating their ability to reduce consumers’ loans,” reported the Washington Post.
Fast forward to not having to deal with this problem. Many call centers, mortgage offices, credit repair companies, loan modification companies and the like have already made the move from the once thriving
green state model to the more widely accepted and consumer friendly attorney based debt resolution model. The advantages include the ability to service 48 States while being indemnified by a debt resolution attorney in every state.
Upon your client finding value in your fully explained attorney based debt resolution program, they immediately receive a call from a paralegal welcoming them to the program. Your client is now a client of a law firm that that has a fiduciary responsibility to their clients as per their law license. Lastly, the paralegal give your customer their contact information and informs them to call them directly in the future. Wow. This is icing on the cake to not being shut out of the debt settlement industry all together.