Business Models Debt Relief Industry


I was not going to publish this email but now that I’ve received it from four different people I’m going to post a redacted version of it.

This must have been sent to a large audience since so many are sending it to me.

More attorney model silliness

FTC Final Rule.

Dear Clients,

I know many of you are very concerned about the future of debt settlement and are looking for a compliant model.

I have worked closely with the [****] the [****] for [****] for over [****] years and he has a compliant solution so you may continue your business as usual.

Please read the email below from [****] and give him a call and secure your future in the debt settlement industry if you have any interest..


If you know anyone who is concerned about how they can possibly continue to operate since the FTC final rule, be sure to have them call me. A new company we’ve formed has hooked up with the largest bankruptcy law firm in the country, and is going to be offering debt resolution services on their behalf for the foreseeable future…

As you know, my company [****] has been around for almost [****] years, and we’ve enrolled over [****] consumers into our program. I’ve been on [****] executive board for the last couple years, and serve as its [****]. This new company we’ve formed is taking on only one or two more affiliates, and that’s it! The law firm’s program we’ll be offering gives the consumers full legal representation, and our affiliates will be able to generate substantial revenues in an extremely compliant manner….

If you know anyone who is interested have them call me at [****] and I’ll explain…


Every time I see one of these emails I’m left wondering why people think it is a good idea to find a loophole to continue a practice that has already been labeled deceptive and abusive?

READ  The Debt Settlement Attorney Model Podcast

Are these lawyers so willing to risk their license think the deceptive sales practices will vanish once the sales people start using their name? If they do, it will be a tough lesson to learn.

I have a news feed going already to monitor “disbarred.”


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About the author

Steve Rhode

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.


  • Sounds like you guys are one of those bad apples you speak of. Attorney models do not work. There is no exemption!

  • I bet. I can’t wait until everything is ready to go and we turn the wheels. In regards to the DSCPA, I really haven’t been concerned about it. I feel that it will land around 10-15% of savings in the end.

    Yet, if it is passed I would re analyze the business model and see what can be tweaked to make it work (even if I have to reduce my target market).

    However, laws are words and there are ethical and creative ways to get around things in an honest manner (within reason). With debt settlement there is a variety of ways the work done during the enrollment process and initial consultation process can be termed (I will leave it at that for now).

    But, at the end of the day if we perform our service at a fair price, we will have happy clients that do not complain. If none complain, the likely hood of being investigated is minimal.

    Furthermore, I heard of all these NEW ATTORNEY MODELS that will be compliant and still let us charge the same heavy upfront fee’s (JK)… I’m sure that when the FTC or State decides to use it’s resources for the benefit of the General Public and to go after a Non-Compliant Company they will elect to go after those MAGICAL ATTORNEY MODELS rather than our PERFORMANCE BASED MODEL.

    To save the industry from the sharks, we as ethical debt settlement providers, must engage the community, our clients, our employees, and etc to help spread the word to warn others of these Predatory Debt Settlement Companies and make them and others aware of the Performance Based options.

    Without clients, these companies will vanish, which will in turn make regulators :), and help increase our volume to where we can operate a sustainable business at such small margins. If the sharks disappear I’m sure regulators will start to back off.

    That is all for now. Talk to you guys again in a short while with an update on the new performance based model for RALDI Financial.

    P.S. Thanks for the best wishes Andy.

    Best Regards, Ricky A. Lopez

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