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How the Veritas Prepaid Legal Plan Can Protect You When You Are Sued in a Debt Settlement Program

The following guest post was contributed by the folks at Veritas Legal Plan.

If you would like to contribute a guest post, click here.

The simple way to describe the Veritas Legal Plan is “Peace of Mind”. While that does not define us, it certainly drives us. No one wants a lawsuit but the reality is that consumers who default on their unsecured debt are at risk of creditor lawsuits. Legal representation is an important component of debt settlement and without an attorney; clients are forced to represent themselves. This is a confusing process and without representation, the client can feel alone and scared. Many fail to file an answer resulting in a default judgment or simply throw in the towel and file for bankruptcy.

Most of the attorney models that we have seen do not include full attorney representation, some offer discounted services or vague claims but when you read the fine print there are many limitations to the scope of representation and extra costs for court appearances. In addition, many charge as much as 30% of the consumer’s debt and lead their clients to believe that, not only are the negotiations being handled by the attorney, but that the services they have purchased include court representation when typically they do not.

These retainer “fees” are charged mostly upfront and so the largest flaw with the Attorney Model is that the clients monthly drafts are being applied to fees and not towards accumulation for settlements and when the consumer is sued by a creditor there is no money available to settle the account; and in most cases the consumer does not have additional funds to hire an attorney.

The largest issue most debt settlement companies are having today is the inability to defend against creditor lawsuits; which results in an attempt to settle the lawsuit before the time needed to file an answer expires. The collector has complete control and leverage and in most cases will stand firm at around 80% of the balance so hat in hand, the decision needs to be made…take the 80% offer and enter into a payment plan or lose the client. A large portion of the client’s monthly draft will need to be allocated for that payment plan which in turn affects all future settlements. The downward spiral continues as a longer term program means less success for the client and exposes the client to additional lawsuits.

For the consumer, receiving a lawsuit sets off a series of doubts and fears that send most running to bankruptcy attorneys for help. What did I do? Did I make the right decision? Should I just file for bankruptcy? At this point, with the legal model, the client is left, having paid thousands in fees for services they were not able to receive, as they had no money saved!

With the Veritas Legal Plan, consumers who are enrolled in a performance based debt settlement program (or even a DIY) can now have all attorney costs covered for EVERY account while accumulating funds for settlements.  The plan provides full attorney representation with a local attorney. No reimbursements, no plan limits, no deductible, no co-pay, access to Hyatt’s network of over 11,000 attorneys and real help to avoid bankruptcy and avoid default judgments.

To that end, consumers currently enrolled in a debt settlement program that does not offer the Veritas Legal Plan are encouraged to have their debt relief provider contact us. We understand there will be instances where this is simply not possible so consumers are welcome to contact us directly. Consumer inquiries should be directed to [email protected] or call Sara at 877-745-5006 Ext 1002. We will make every effort to provide our services to anyone who needs it.

How the Veritas Prepaid Legal Plan Can Protect You When You Are Sued in a Debt Settlement Program by

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  • Scott Conroy

    So it looks like performance base debt settlement companies do have an opportunity to provide an additional service to their clients and make money up front? If it is not a “Debt Relief Service” they are selling then it is not subject to that part of the TSR and they can earn money at the point of sale.

    I like it.

  • Scott Conroy

    So it looks like performance base debt settlement companies do have an opportunity to provide an additional service to their clients and make money up front? If it is not a “Debt Relief Service” they are selling then it is not subject to that part of the TSR and they can earn money at the point of sale.

    I like it.

  • Angelo

    Our program is not a “Debt Relief Service” as defined by the TSR.  TSR defines a “debt relief service” as a program that claims directly, or implies, that it can renegotiate, settle, or in some way change the terms of a person’s debt to an unsecured creditor or debt collector. That includes reducing the balance, interest rates or fees a person owes. Veritas does not claim directly, or imply that we can renegotiate, settle, or in some way change the terms of a person’s debt to an unsecured creditor or debt collector. We simply provide pre paid legal expense plan to defend lawsuits. 

    A Debt Settlement company is prohibited from charging advance fees for providing debt relief services but can refer a consumer to a Debt Management plan if that’s the best option for the consumer and they are permitted to collect a fee for that, same with referring consumers to total bankruptcy and CCC programs.  It may not be for you but there’s nothing tricky about it.

  • Bob_hicky

    Again you are missing the point.  Veritas instead pays the DS company ADVANCE FEE money when enrolling a client in a DS program.  This no advance fee program no has advance fees.  Very tricky…….nope.

  • Angelo

    Incorrect.  Once again, Veritas does not settle debt and we do not enroll consumers into any Debt Settlement programs nor do we earn a fee for settling any consumers debt.  The Legal expense plan is a stand alone product that debt settlement companies can offer to their own clients.

  • Bob_hicky

    And than receive compensation for a client you enrolled under Debt Settlement….

  • Angelo

    Let me clarify…

    Veritas is the exclusive distributor of the Hyatt Legal Expense Plan which was created for consumers enrolled with a performance based Debt Settlement Company.  That’s it.  Veritas does not perform any debt settlement services nor do we provide legal services.  We facilitate the enrollment of the member and the legal services are provided through Hyatt’s network of over 11,000 attorneys.

  • Bob_hicky

    This
    program is unclear.  I understand they are bringing the “Hyatt Legal Plan”
    onboard to provide representation in the event of lawsuit.  But I also see a
    Veritas DS program here, and in a statement they made that the TSR doesn’t apply to 
    them.   I disagree.  The debt relief rule is written to be applied broadly. 
    There is no exception I am seeing here to the
    no-advance fee prohibition, and there is no attempt at a F2F exemption presented
    in the attached file they offered.  Since you would be marketing and selling this by phone, the
    TSR would apply- attorney program or not.
     
    I
    would like a letter from their legal counsel as to how this is outside of the
    TSR, and more clear explanation of what they are offering the consumer.  The
    legal representation only seems to trigger if consumer is sued. And even if it
    applies at all times, I don’t see how they are providing enough legal
    representation to each consumer to fall into any state or federal
    exemptions.  I guess just curious as to how they would explain all of this?

  • Bob_hicky

    This
    program is unclear.  I understand they are bringing the “Hyatt Legal Plan”
    onboard to provide representation in the event of lawsuit.  But I also see a
    Veritas DS program here, and in a statement they made that the TSR doesn’t apply to 
    them.   I disagree.  The debt relief rule is written to be applied broadly. 
    There is no exception I am seeing here to the
    no-advance fee prohibition, and there is no attempt at a F2F exemption presented
    in the attached file they offered.  Since you would be marketing and selling this by phone, the
    TSR would apply- attorney program or not.
     
    I
    would like a letter from their legal counsel as to how this is outside of the
    TSR, and more clear explanation of what they are offering the consumer.  The
    legal representation only seems to trigger if consumer is sued. And even if it
    applies at all times, I don’t see how they are providing enough legal
    representation to each consumer to fall into any state or federal
    exemptions.  I guess just curious as to how they would explain all of this?

    • Angelo

      Let me clarify…

      Veritas is the exclusive distributor of the Hyatt Legal Expense Plan which was created for consumers enrolled with a performance based Debt Settlement Company.  That’s it.  Veritas does not perform any debt settlement services nor do we provide legal services.  We facilitate the enrollment of the member and the legal services are provided through Hyatt’s network of over 11,000 attorneys.

      • Bob_hicky

        And than receive compensation for a client you enrolled under Debt Settlement….

      • Angelo

        Incorrect.  Once again, Veritas does not settle debt and we do not enroll consumers into any Debt Settlement programs nor do we earn a fee for settling any consumers debt.  The Legal expense plan is a stand alone product that debt settlement companies can offer to their own clients. 

      • Bob_hicky

        Again you are missing the point.  Veritas instead pays the DS company ADVANCE FEE money when enrolling a client in a DS program.  This no advance fee program no has advance fees.  Very tricky…….nope.

      • Angelo

        Our program is not a “Debt Relief Service” as defined by the TSR.  TSR defines a “debt relief service” as a program that claims directly, or implies, that it can renegotiate, settle, or in some way change the terms of a person’s debt to an unsecured creditor or debt collector. That includes reducing the balance, interest rates or fees a person owes. Veritas does not claim directly, or imply that we can renegotiate, settle, or in some way change the terms of a person’s debt to an unsecured creditor or debt collector. We simply provide pre paid legal expense plan to defend lawsuits. 

        A Debt Settlement company is prohibited from charging advance fees for providing debt relief services but can refer a consumer to a Debt Management plan if that’s the best option for the consumer and they are permitted to collect a fee for that, same with referring consumers to total bankruptcy and CCC programs.  It may not be for you but there’s nothing tricky about it.

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