With mayors, senators, and attorneys general hot on the trail of unregulated debt settlement companies that have apparently grown vitally through the creation of debt settlement subsidiaries, the end seems near. As early as next week or no later than June 15, 2010, paying off your customers’ debts can be a thing of the past. Talk about having the rug pulled out from under you if you’re still depending on the remaining 20 “green states” of debt settlement. His claim, explained in the Reader’s Digest version; Debt settlement sales agents promoting debt settlement services have been recorded saying, “stop paying off your credit cards, I can pay off your debt for 25 cents on the dollar.”

Now think about it, stockbrokers, financiers, real estate agents, etc. they all have to be licensed and regulated as a means of protecting the public, so why aren’t these phones terrorist? There are unscrupulous telemarketers being taught to read scripts who have no idea of ​​the impact paying off debt can have on your credit rating, tax consequences, etc.

Sen. Charles E. Schumer (DN.Y.) is planning to introduce a bill this week that would ban the debt settlement industry’s up-front fees and cap the total amount charged. It would also allow consumers to cancel the program and receive a refund.

You would probably want your debt settlement sales agents not to claim to be affiliated with government agencies or federal stimulus programs, since they have also been registered by federal agencies. Emails containing copies of sales scripts are even popping up prompting sales agents to tell prospective clients that they have been monitoring their credit score and it has been declining rapidly in recent months when, in fact, this is anything but the truth. People’s lives are on the line, and when a confident sales professional is equipped with the answers to the questions he already knows customers are going to ask, it’s clear who has the upper hand.

At this point, if you are still prepared for the debt settlement business vs. attorney-based debt resolution program, your friends and business associates may not look favorably on you as the daily news is published in major newspapers such as Reuters, The New York Times, The Washington Post, CNN , CNBC, ABC, NBC, FOX just to name a few, blowing up any and all words being said about the debt settlement industry.

Let’s be specific. “He is attractive beyond words,” said Sen. John D. Rockefeller IV (DW.Va.), who heads the committee, told the hearing. “These debt settlement companies are kicking people when they’re down.” It’s no wonder that American reputations are known to cannibalize each other and are likely to find prey in the next emerging industry.

Friday, April 23, 2010, “A government investigation into the booming debt settlement industry found that many companies misled consumers by claiming to be affiliated with federal stimulus programs and exaggerating their ability to reduce consumer lending,” reported the Washington Post.

Fast forward to not having to deal with this problem. Many call centers, mortgage bureaus, credit repair companies, loan modification companies, and the like have already moved out of the once-thriving
green state model to the more widely accepted and consumer friendly attorney-based debt resolution model. Advantages include the ability to serve 48 states while receiving compensation from a debt resolution attorney in each state.

Once your client finds 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 has a fiduciary responsibility to its clients under its law license. Lastly, the paralegal gives your client your contact information and tells them to call you directly in the future. wow. This is the icing on the cake so you don’t get locked out of the debt settlement industry entirely.