I’m a Debt Relief Lead Vendor and Nervous About One of My Clients. – Ryan


I’m a lead vendor that works with a lot of debt consolidation companies and debt settlement companies. I have a client that does debt settlement and says they do business in 39 states. I’m afraid to work with them as my attorney is telling me debt settlement is only legal in about 25 states and that is with a lot of licensing. They aren’t even licensed in a lot of the states they can be?


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Dear Ryan,

It’s so nice to get an debt relief industry question. Thank you.

I’m not sure what specific advice your attorney gave you. Your attorney would be a good person to discuss this with and ask their opinion if you should shy away or there isn’t a problem. I’d lean on the advice of your knowledgeable attorney when it comes to managing your liability. Outside of paying for billable hours, the next best approach is to trust your gut.

While it appears there are fewer attorney model debt settlement companies these days, it was the reliance on that attorney model that convinced companies in the past they were exempt from registration or had a pass.

Frankly, maybe you should just ask your client a direct question about the issue and see if you feel confident with their response.

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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.
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