Certainly an interesting comment from a concerned employee at The Credit Exchange about recent activity there.
I work for this company but not in the sales part. Movemynetworth was promised to be a huge sucess by its owners and all it did was get us more trouble it seems. After reading this I can now see why. My friends in my department are being laid off and the sales reps salaries were all taken away and they were put on 1099 pay [independent contractor] this month. I guess this means they dont have to pay the employees salaries anymore. I was told that we are so broke that we cant pay our employees and we are trying to save money anyway we can to stay in business. Yet the owners just keep saying everything is fine and we have nothing to worry about. Im starting to think this is all one big scam. I also heard the credit exchange is in a lot of trouble and being sued. – Source
The Credit Exchange does not have the best reputation as far as selling consumers into top notch debt settlement programs, having been a referral source for both Allegro Law and Hess Law, both companies that were shut down by their respective State Attorney Generals’.
But now, it certainly can’t be viewed as a good sign that they are selling a four year contract budget program and their employees are concerned about just having a job next month. The move to switch employees from salaried position to independent contractors seems like a desperate move to save money but will leave the employees and the company in a worse spot. I doubt the company will be able to truly make the case the employees are independent contractors and I doubt the employees will realize they may not be eligible for benefits, no social security payments will be made by the employer, the company may claim the contractors are not eligible for unemployment, and the now contractors will be responsible for paying their own taxes out of the pay they will make.
I just can’t see how The Credit Exchange can justify switching the employees to 1099 contractors in the same jobs. I seriously doubt the employees are suddenly compliant with the criteria of a contractor. If they are paid by the hour (not the project), report to a company office (not their own office), must perform the work personally (can not send someone else to do it for them), use the employer’s equipment (not their own), and do not hold themselves out as being in business for themselves (do not advertise in the yellow pages, do not have have employees of their own, etc) then they are NOT 1099 contractors.
My bet, this is not going to end well for clients, customers, the company or the employees.
You can read all the stories about The Credit Exchange, here.Is The Credit Exchange a Scam on the Ropes? by Steve Rhode