I received the following email which, if accurate, would support the concerns over some companies sending out consolidation loan offers only to switch them into debt settlement programs.
“I worked for [ ] company for a few months and quit because I could not sell how they wanted me to.
I have worked in the debt settlement industry for little over 3 years.Their whole sales model and script is based off a bait and switch. Very misleading in my opinion.
They get leads from a lender called [ ], the lead assumes that [ ] is trying to get them qualified for a loan. [ ] is not a lender and I do not believe they have a lenders license.
The sales agent gather a few pieces of information, name, address, DOB, SSN, ect.. Advises the lead that he is going to run their credit to see if they qualify for a loan.
They pull the client’s credit, go over the accounts they are going to include to pay off “if” they get qualified. They gather a budget from the client and talk about the client’s debt to income ratio. They place the lead on hold for several mins so they can submit it to the underwriter. There is none!
They get the lead back on the phone and advise that they have been approved “congratulations”. Well, the “approval” is for debt settlement, not a loan. No loans are ever given out as they are not a lender.
They have been approved for a program with [ ], which is the same company. A lot of the leads that they bait into debt settlement programs can, will and have qualified for loans to pay off their debts as I have had clients cancel on me after a week or so after saying they have been approved for a loan to pay the debts off.
Its very high-pressure sales and a revolving door of new sales agents coming in and others getting fired. The owner and management staff is very aggressive, pushy and if you don’t close 6 deals a week, you will get fired.”
Sales script attached.