Traditional Debt Settlement Companies Are Working for the Creditors, Not the Consumer.

I recently wrote a review about a new company called Capital Protection Group. It occurred to me as I was working on it how times have changed in the last year.

Debt settlement companies used to say “Credit counselors are working for the creditor, not the consumer.” Debt settlement companies seemed to want to position themselves as the champion of the consumer.

Now, Capital Protection Group, has rolled out a new approach in the debt relief industry, saying “Traditional debt settlement companies are working for the creditors, not the consumer.”Source

I wonder how the debt settlement industry, and trade associations TASC, and USOBA are going to react to that?

Hopefully soon, groups in the debt settlement and debt relief world will understand I’m not against good companies. I’m against companies which take advantage of consumers by collecting massive fees up front and having no real refund policy and keeping money that wasn’t really earned when the program does not work for the consumer. I apply this point of view across all debt relief companies, be they bankruptcy attorneys, credit counseling, debt management, debt settlement, hucksters, or any variation or combination.

Bottom line, I’m not really against groups of companies as much as I am for consumers getting fair, reasonable, and honest help.

I can’t tell you how much I’d just love to see the debt settlement industry have a public conversation with Capital Protection Group over this new marketing ploy and gimmick. I’d even pay money to watch.


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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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2 thoughts on “Traditional Debt Settlement Companies Are Working for the Creditors, Not the Consumer.”

  1. Steve, we again appreciate your comments about THE CAPITAL PROTECTION GROUP.

    Like all businesses from Coke vs Pepsi….we feel like we are better choice for the consumers. Thats all.

    Steve, you feel like you are a better choice, debt settlement companies feel like they are a better choice, attorneys feel like they are a better choice….

    Steve, you seem like a man who really cares for his clients and I appreciate that. We too care for our clients. I think you think that we dont care about our clients. We love our clients. We know and empathize what they are going through. We just want to help them. Most clients who join us are those who cant afford debt settlement, cant qualify for chapter 7, dont want chapter 13….and most importantly they dont want to “do nothing”. Our service is dirt cheap compared to other services and we feel like we provide an honest service for our clients.

    Steve, what we do is send request to the creditors asking them to verify debt. Attorneys have been doing this for clients for years with great success. Our methods are in legal compliance and in accordance with the Fair Debt Collection Practices Act (FDCPA), Section 809(b), “Validating Debts”. Most people are daunted by this procedure and therefore hire a company like ours to help them do this.

    These methods have been found to help “leverage” the creditors to negotiate a low settlement.

    We are just out there like the rest of you guys trying to give some peace of mind back to our clients. We are not the bad guys you have painted us out to be.

    We have removed those comments from our site that you have found so offensive. I feel like you now have a personal vendetta against us. We are a Christian based company trying to help people. We dont want any fights with anyone. (except with the credit card companies)

    I guess now you are trying to stir the debt settlement companies to fight me. Do you really think that the few hundred clients that I have or will have will really make a dent in this industry? I ask you to just let us run our company in peace. We are trying to help our clients just like you are. Lets agree to disagree.

    We all know that clients main responsibility in any program (except chapter 7) is to save “some money” and to be able to pay back “some money” to their creditors. We do not lie to clients, they know they what the risks and rewards are and we tell our clients to save money and settle their debts.

    There are some creditors who will just “give up”. We know that the validating debt letters can help that happen. Yes, those charge offs will be a credit score nightmare but we have found out that most clients are just trying to hang on to what they have (like their house) and not really worried about their credit scores. Will some of those charge offs haunt them? Will some of those charge offs come back later to want collection? Yes, all those things are true and we dont lie to our clients but many of those “charge offs” will simply “go away”….that is a fact….and our program can facilitate that.

    Steve, you have a tremendous site and I can see its value to many clients. I hope you have amazing success in your business and life. We do apologize if we offended you in any way. We just want to go run our business and help our clients settle their debts. We dont want to harm anyone.

    We like other debt companies cannot seem to convince everyone about our service. Steve, would you like us to recommend to those people that they contact you? We would be more than happy to direct these people to a debt counselor. We dont want anybody not to have “somebody” helping them. Debt is ruining families, causing more divorces, more domestic violence….in some way we are all trying to help lower those actions. Let me know if we can direct people to your service.

    Again, we appreciate your input. You have made us make our site a better site. Let us know how we can help.

    • John,

      As always, I’m happy to publish alternative points of view.

      As a piece of advice, you might want to hold off on the “Christian” angle in promoting yourself. It seems to be an angle that a lot of scam and ripoff groups seem to use. It’s much better to be a Christian through your actions rather than your words.

      If you want to excel in the debt industry may I suggest that your company focus on delivering exceptional customer service, prompt communications with clients, a fair and reasonable refund policy, and no front loaded fees.

      Just be aware you are walking into an industry that is under scrutiny by the FBI, Secret Service, State Attorney Generals’, and other financial crime regulators. It’s not me you’ve got to worry about. if anything, by listening to what I had to say I helped you, not hurt you.

      I can assure you I have no personal vendetta against you or any other company. There are far too many people to help for me to have time for a vendetta against anyone.



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