Posted on June 3, 2009 at 9:13 am My name is Rick and for those of you that are paying monthly fees,and your first tree checks go to the settlement company.  You are getting ripped off!  We charge no upfront fees and a flat rate of 9% when your debt is settled not before.  Debt settlement has a 1.4% completion rate,we are changing this to 100% with us.  You wouldnt pay for a car without the car so don't give a settlement company your money before you settle.

Posted on June 3, 2009 at 11:51 am Rick, Please do not market your company on this forum, that is not the purpose of the website. And to address what Rick said, if a settlement company charges a retainer fee, it does not mean they are ripping you off. You need to make sure the company is in fact reputable, but you can do that through the Better Business Bureau (BBB), The Association of Settlement Companies (TASC) and other research methods online. The majority of good companies do in fact have some type of retainer fee so that is very misleading. And also, a lot of companies who charge a retainer do in fact apply a portion of that payment to the client's escrow account for settlement. And another thing- most people who purchase a car need to make a down payment first to actually buy the car. So, some people may have to make a retainer payment to benefit from the services these companies provide.

Posted on June 16, 2009 at 8:46 pm Rick, you will be in business for about one month max with your fee model...which will hurt consumers far more than a settlement program that actually does its job well and collects a fee for it.  seriously, how do you expect to service people for 3 years without getting paid a dime until they are finished?  Also, if you think 100% of clients can complete your program then you obviously have no experience in the debt relief industry, as this is an impossibility.  

Posted on August 30, 2010 at 12:36 pm Rick is a huckster. Steven and DG are correct.  100% of clients will have a full and successful resolution to their debt is a farse. Charging only 9% for your service, means you are providing virtually no service. Cost per acquisition in settlement ranges from $400-$1,000. IF it is marketed honestly. 9% of a 10k debt is $900. You are going to work for 2 years to just break even? Avg consumer debt is now under 7k. Even if you bring in 20k and above debts you will still only gross $1800 over 24 months.. Admin and overhead rates for any legitimate business is 5% reducing your profit to $810. And that is IF, IF you are able to settle the debt when the time comes. Your numbers do not add up. Debt Settlement with No Upfront Fee settlement is legitimate and has been done for years. There will be little to no fees up front, however upon settling the debt companies will be charging within the range of 20-30%. This will be the norm as of Oct 27.

Posted on September 1, 2010 at 7:26 am Jacob- Appreciate your knowledge- I have a small sales company & our backend keeps saying "dont worry" but we dont know what theyre going to do- Have you heard of affil programs under the new model? How can an affil make $$ now? Are there any good companies offering real commissions?

Posted on October 11, 2010 at 5:21 pm Sean - thanks for your comment. You may want to contact Lead Discovery at leaddiscovery.com. They are a marketing company for No upfront fee no monthly fee settlement companies... and other financial services. They may have opportunities or at least some references for you to follow. In general the sales only companies will need to change their model to fit the new financial incentive with this revenue model. Most settlement companies will have a cash crunch during this transition since revenue will not be earned for 8-12 moths on their customers who have had a successful settlement. So sales companies will need to offer ways to bring in deals with a low low low acquisition cost and perhaps share in the settlement reveue instead. This shifts the burden on you to bring in solid legitimate deals. This makes chosing your lead source all the more important. Honest, truthful marketing, ethical sales and a solid service for the client will result in success for all. Again check out Lead Discovery they have been in the business for nearly 9 years and have an excellent reputation of marketing with high ethics.

Posted on October 24, 2010 at 5:53 pm I have been in the debt settlement industry for many years, and have worked with several different companies. However, I have seen a lot of clients hurt with the model of paying 10-15% of your balance to the settlement companies. Especially when the fees are typically charged up front in the first 9-15 months. This model is simply a rip-off for the consumer.