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Business Models

Suspicious New Life Financial Solutions Contract Has Me Very Concerned – SCAM

A credit counselor tipster (send in your tips here) sent me in a consumer agreement for a company called New Life Financial. Immediately after looking at the contract and then visit the website my radar was going off. It seems the company that offers a service where they review the finances of a consumer and then guide them to a ... Read More »

Debt Settlement for Business Debts. One Step Ahead of Regulators Says Reorganization Management Group.

Reorg Group

Thanks to a tipster (send in your tips here) I received the following notice from the Reorganization Management Group. This is the second such organization that has been brought to my attention recently that claims to focus on business debts. The first was a business debt settlement company called Corporate Turnaround. More about them later. Here is a document the ... Read More »

Debt Settlement Attorney Referral Services Draw the Unwanted Attention of the Florida Bar

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The Florida Bar has launched a new investigation into for-profit lawyer referral services. The committee studying this was informed that the Attorney General’s Economic Crimes Office is investigating several lawyer referral services, both those registered and not registered with the Bar. Some of the services do “cold call” or direct solicitation, which is prohibited in Bar rules. According to information ... Read More »

Non-Profit Credit Counselor CEOs Making Big Bucks

NP Comp

Thanks to a tipster (send in your tips here) I was directed to an article that appeared recently titled Non-profit credit advisers cash in; CEOs earn big as consumers struggle. The article does make some interesting observations that some of the larger non-profit credit counseling groups do pay their CEOs a tremendous amount of money in compensation. “Of the 44 ... Read More »

Hey Credit Counseling It’s Coming. The No Fairshare Debt Management Plan.

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Over the past year there has been more talk from people about rolling out a 0% fairsahre debt management plan. Fairshare is the money creditors “contribute” to non-profit credit counseling groups. It’s a percentage of funds collected from consumers and returned to their creditors. In the mid-1990s the fairshare percentage was 15% of all funds returned to creditors. Today it’s ... Read More »

Mass Joinder Mortgage Litigation Suits Spreading to Florida

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The press release below caught my eye. It appears the wave of mass joinder mortgage litigation suits is now hitting Florida. Get Out of Debt Guy – Twitter, G+, Facebook Mitchell Stein, Esq. Files Mass Joinder Lawsuit Against Bank of America in Florida Consumer Advocate Leading Landmark Cases against Banks in California Alleges Massive Fraud against Sunshine State Borrowers Calabasas, ... Read More »

Cyrus Global Says Debt Restructuring is Better Than Anything Else

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A tipster (send in your tips here) sent in a pitch Cyrus Global is sending out information to prospective affiliates/partners promoting that debt restructuring is superior to debt litigation lawyers, debt settlement companies and debt management companies. Has anyone talked to an actual consumer that had a debt buyer that purchased their debt and restructured it for them? I haven’t ... Read More »

What to do Right Now if You Are a Debt Settlement Company and You May be Going Out of Business. Lessons Learned.

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It occurred to me that this morning I wrote an article about what to do if your debt settlement company might go out of business but while I’m sitting here waiting for my next flight I thought I’d share some advice if you are a debt settlement company and it does not look like you will be able to continue ... Read More »

Mass Joinder Mortgage Lawsuits Just Got a Whole Lot More Foul Smelling

Brookstone Sales Ad

An amazing tipster (send in your tips here) sent in a bunch of documents on the sales approach for the recent wave of mass joinder lawsuits that are being sold as a way to get your house free and clear. These documents, that I will share with you below, not only create some potential concerns over legal fee splitting but ... Read More »

Debt Relief Cottage Industry Springs Up. Fee Recovery by the Center for Legal Justice.

Center for Legal Justice

In the interest of disclosure I have had conversations recently with Damon Day, an independent debt coach, that does provide a fee only on recovery service for consumer paid fees for debt relief service not delivered. I’ve also spoke with others previously inside the debt settlement arena who are considering launching national services to recover fees paid specifically for advanced ... Read More »

Legal Helpers Debt Resolution Lawsuit May Just be the Primer to Kill Most Attorney Model Debt Settlement Groups

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For some it was only a matter of time before a regulator took a swipe at the attorney model debt settlement approach. Well today the mystery was solved of who it would be. Attorney General Lisa Madigan, a hero of many for standing up for consumers, answered the call and filed suit today against Legal Helpers Debt Resolution, headquartered out ... Read More »

The FTC Does Not Want Debt Settlement to Survive

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A tipster (send in your tips here) sent in the following comment I wanted to address. But now that debt settlement is dwindling, it is clear the FTC wants this industry not to survive or rebound. DS needs internet marketing. FTC is shutting down lead gens, who are not companies, and pretty much everyone right now. photo © 2008 Hazrulnizam ... Read More »

Canada Credit Fix Claims to Clear Your Bad Credit and Only Pay Ten Cents on the Dollar for Settlement

Ten Cents on the Dollar

A wonderful tipster (send in your tips here) brought the following company to my attention. Canada Credit Fix claims to be able to remove accurate but negative information from your credit report in Canada. They also claim to be able to settle debts for ten cents on the dollar. The tipster (send in your tips here) says they first heard ... Read More »

Debt Settlement Fee Structure in Relationship to Client Success Rates

Fee vs Success

Debt settlement industry insider Scott Johnson sent me this interesting chart based on the numbers he has reviewed from the different models. His data shows consumers are graduating at higher rates and getting lower settlements from performance based debt settlement companies. He determined, a performance based debt settlement model will result in 57.5% of consumers paying back between 57% – ... Read More »

Here is How to Financially Screw Consumers With the Debt Double-Tap Method.

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A disturbing trend is becoming clear that some companies promoting lawyer backed debt relief services have in fact created a clever little model for cleaning out consumers and making twice as much money. Basically what happens is the lawyers get the exclusive client for essentially free since the consumer winds up paying the marketing costs of the affiliate selling them ... Read More »

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