What is it with debt settlement companies? They often say the dumbest things.
This nugget comes from a press release by the DebtManagementGuys.com and Michael Hart.
This reason is offered up why debt settlement is such an attractive business opportunity.
As of October 17,2005 all Americans seeking bankruptcy must complete a credit counseling program. The problem with this is that so many people are unable to afford the monthly payments in a credit counseling program, and must seek debt settlement. – Source
That isn’t even close to having any particle of sense in it. The release goes on for the Debt Settlement Guys to brag about how debt settlement is such a lucrative business opportunity for people to sell to consumers in financial trouble.
Whether you’re an established debt settlement company that simply wants to earn more on each file or a mortgage broker interested in turning your unqualified borrowers into a healthy revenue stream, we have the opportunity for you: You’ll earn at least 9 points [nine percent] on each transaction. You’ll get all the support and training you need. Getting set up is easy…you don’t need a license and you can be up and turning a profit within 24 hours.
What makes the first statement by the dudes at Debt Management Guys so ignorant is that consumers are not required to enter a credit counseling program to file bankruptcy. Consumers are required to complete a pre-bankruptcy education course that is typically delivered by credit counseling groups in order to file bankruptcy. Taking the class doesn’t lead anyone to “must seek debt settlement.”
Insert sound of head shaking, UFB!
But the kicker come with the quote in the release, “you don’t need a license.” If you are salivating for a business opportunity and want to sell debt settlement services you might want to get to know the names of the state Attorney Generals’. They’ll want to know your name so they can spell it correctly when they shut you down and sue you for providing unlicensed debt management services.