I had a refreshing and frank conversation with U.S. Debt Resolve President Scott Johnson the other day. We talked about pending regulation of debt settlement companies, deceptive marketing, debt settlement companies which are not consumer focused and what the future looks like for the debt settlement industry.
Scott talks openly about how regulation of the debt settlement industry is needed and will help it to move forward and become more accepted as a reliable debt relief tool. He says that the bad actors in the debt settlement industry need to be weeded out and that the resistance of USOBA and TASC to embrace regulation only make the industry a greater target for regulation.
His opinion is that the good guys in the debt settlement industry are a small minority of current participants.
We had a great discussion why the upfront fee model is unfair for consumers and why the self-saver model for debt settlement only leads to less success and more expense for the consumer.
He also talks about how debt settlement company sales materials do not provide enough disclosure for a consumer to make an informed decision about which debt settlement company is more successful than others based on actual performance.
Scott talks about why he feels the attorney model is not protected moving forward and why a self-directed approach is not as effective. His feeling is that an attorney model adds additional cost to people pursuing debt settlement.
You can listen to my interview with Scott below.Debt Settlement Company President Speaks Out in Favor of Regulation of the Debt Settlement Industry. Says Big Upfront Fees Must Go. by Steve Rhode