A great reader sent me a recent Credit Associates mailer offering debt relief services.
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The “pre-approved” offer says it is from the underwriting department. That entire industry use of underwriting is still an odd thing. According to the definition – “Underwriting is the process through which an individual or institution takes on financial risk for a fee.” – Source
But that’s not actually what debt relief companies do that are settling the debt.
The mailer says, “Due to an important ruling to protect consumers in credit card debt” but what ruling could they even be talking about?
The consumer is told they are “pre-approved for a debt relief program” but what does “pre-approved even mean? Maybe it means pre-approved to receive the offer?
A sample of the projected settlement amount is shown but the small print at the bottom of the letter says, “Numbers being used above are only estimates and do not include fees to us.” That could create issues when you look at the FTC guidance Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business.
I love the statement, “Your pre-approval provides a no-risk guarantee.” A no-risk guarantee of what or for what?
I’d love to hear your take on the mailer. Please comment below.