Rumors are flying and now it’s time for you to share what you know on this. Two different very reliable sources have shared with me two similar stories that have piqued my interest.
Apparently, a very large national debt settlement company has been pitching the idea of pairing up with some non-profit credit counselors to sell their debt management plans for them. Could just be a marketing relationship and if so, no harm.
But the word on the street is the national for-profit debt settlement company has found a few non-profit credit counseling groups to participate. The debt settlement company does all the work and takes part of the fairshare revenue paid by the banks to the non-profit credit counselors on a 70-30 basis with 30 percent going to the credit counseling group. The other source said it was a 50-50 split.
If that’s the real story then the credit counselors probably have some significant exposure on this that could run them into trouble with the IRS and the mighty Mr. Kohl and Chase fairshare.
Have you heard anything on this? Post your comments below.
What do you think about this approach? Is it just smart business or a potential issue that could later hurt the credit counselors?
Chris Kohl at JP Morgan Chase Would Probably Love to Know if This is True by Steve Rhode
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