A great reader sent in the following mailer she received through my I Buy Junk Mail program.
The outside of the mailer does not say who it is from and appears to want people to believe this is a government mailer. The mailer says it comes from Postal Permit 1827 that has also appeared on other mailers.
The inside of the mailer says the offer is part of the 2020 Credit Card Balance Relief program and says “Issued by: United Settlement.” There is no way to verify if this is the same as this United Settlement.
It appears nearly identical to the 2019 Credit Card Balance Relief mailer sent.
But if that’s the case, there is an issue. It appears United Settlement is not licensed to offer debt relief services in Minnesota when the consumer lives. The State of Minnesota does not report United Settlement as holding a license and is not a registered business.
The offer appears to want to instill urgency for the consumer to call. It says “second notice” on the envelope and says it is “pending approval” However, there is one big issue. As much as the mailer appears to want to give the impression it is a government mailer or official program, there is no such official program called the 2020 Credit Card Balance Relief.
That phrase appears to be what United Settlement wants to call its sales department.
The offer seems to be an effort to sell a settlement program.
It is interesting that the mailer says “enrollment is limited in the city of X call now before open enrollment closes.” Seriously? I have my doubts.
The large example shown says the estimated balance is $25,000 owed by the consumer. The final settlement amount is not shown, but it’s tricky to figure out. The amounts given for interest savings and immediate savings appear to be related to interest expenses and not final debt reductions.
The company sending the mailer claims an approximate savings of 50% of the debt but that does not include fees.
I did notice that the disclaimer used on the United Settlement website appears similar to the one used on the mailer.
“Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 30% including fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us.”
I would recommend that anyone considering using such a company should read the following free guides.