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Debt Relief Legally Wandering Into Problematic Debt Restructuring

A reader and tipster (send in your tips here) just sent me an email that was sent out by Debt Relief Legally.

For the most part it was very typical of what I usually see. It mentions they offer affiliates access to debt mediation programs, tax settlement programs, and credit counseling programs.

And if this email was typical like the rest I would never have published this but here is what I almost missed.

The email promotes the new debt restructuring solution I wrote about here. Consumer Debt Restructuring 101: What It is and Why You Should Avoid It.

Mark my words, marketers are going to be foaming at the mouth to jump on selling debt restructuring but it is so full of problems and the failure of the strategy will do such damage to legitimate providers that I stand by my opinion that people need to stay away from this mess.

Debt restructuring is going to result in unhappy clients, complaints and legal action just like debt settlement did.

It’s a stinker but here it comes.

See my red arrows below.

Debt Relief Legally Wandering Into Problematic Debt Restructuring

Read all about why this program will harm many debt relief providers. See Consumer Debt Restructuring 101: What It is and Why You Should Avoid It.

Debt Relief Legally Wandering Into Problematic Debt Restructuring
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Aubrey Jenkins

    It was never made available to our affiliates as the creators of the program were unable to provide the information and data we required and requested during their initial beta process. As you can see, the letter clearly states to please inquire about progress and when it will become available. It never did. I’m happy to answer questions regarding our stance on the program and why we decided against allowing our affiliates to make submissions. We take all cautions necessary before releasing programs to our affiliates. If we do not believe in something or have proof of compliance and success for the consumer we simply do not offer it.

    Aubrey Jenkins

  • Matt

    I am CAUTIOUSLY optimistic about this “debt restructuring” option. I have spoken with some debt buyers and a couple of attorneys that believe at it’s theoretical level, if it is true and can be done successfully, could be a fantastic option for consumers. On the other pragmatic side, this needs to be watched CAREFULLY. If this strategy does not work, it needs to be called out with EXTREME prejudice in it’s infancy. I appreciate the new “triage” approach with debt relief providers expanding their offerings to more appropriate programs decided by the consumer’s actual situation. The bottom line with many of these firms, the sales portion of their business needs to be done with ABSOLUTE transparency, honesty and accuracy. Section 5 will be the noose if you do not heed this warning. Keep your eyes on this Steve…

    • http://GetOutOfDebt.org Steve Rhode

      Trust me, I will.

      At the very core of this approach is a critical flaw. Not all debt will be eligible for purchase, if any. This leads to a fundamentally incomplete solution that leaves some creditors out in the cold and I think we both know the risks that exposes the consumer to.

      Collection pressure and lawsuits by the creditors that won’t play along will lead to complaints and unhappy clients. Unhappy clients will complain they were screwed. Regulators will clamp down harder.

      In this environment where debt settlement has a chance to breath and redeem itself from all of that, is this where it is wise to send the industry down again?

      This program and this time will do more harm to the debt relief industry than help, is my prediction.

      Just for grins, how about asking the Cyrus Global folks for their early transparency data to see what the results are.

      I hope you have a great conference and I know you are with me on trying to help debt relief be better.

      • Debtman

        I am sorry, but my opinion is that there is no way the “debt restructing” program design, as it has been laid out, will do anything other than flounder and die before it even hits the beach.
        It has been exposed for what it is, flawed from concept to delivery. Those most interested are watching already.
        The transparecy of what it actually is will kill it even faster, so transpare away…

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