With permission I am posting the following from an email I received from a debt settlement company I have written about on this site. The company in question does not want to be identified but they have allowed me to share their “turning point” moment that made them realize that FTC TSR compliance is the best way to go. They feel there are a bunch of loose debt settlement operators out there that have no intentions of complying with the new laws and instead are only looking for loopholes to avoid compliance.
I think this company now has a great opportunity to alter their path, assist consumers in a fair and reasonable way, and when they are ready to go public, be a voice of positive change in the debt settlement industry.
The Debt Settlement Company Coming to Jesus Moment
“And that’s when it happened. I guess you could say it was the “straw that broke the camel’s back”.
One man came on the phone and said he and a few of his buddies in the industry had a great idea on how they can still capitalize and make money.
Iphones.
Yes, Iphones. These companies would get about 500 Iphones and put some credit and debt materials on them and sell them for $1,000 over the course of a year. All this just to collect a paycheck before you settle. Now, this is not intended to portray other settlement companies as bad or negative and ours as great. We have made many mistakes, and should fall under the same scrutiny as everyone else. What baffles us is the fact that this happened on a conference call with the trade organization that is supposed to be monitoring and auditing their members according to their “Zero Tolerance Policy”. We have been members for 2 years and have never been secret shopped or even audited!
As we heard this Iphone plan unfold on the conference call, we all looked at each other and immediately said, “We can’t be a part of this.” So from that time we have made it our mission to become TSR compliant by the last week in September. We have had multiple conversations with the FTC attorneys on making sure we are within the guidelines as well as creating a model that will allow us to be successful but more importantly, allow our customers to be successful.
Right now companies are torn between trying to get around the TSR and trying to comply with the TSR. They want to get around it because they want to make money and not take a financial hit, but they also know that it will not be long before they are found.
To us, the last month has been difficult but eye opening. It’s going to hurt, and is not going to be easy, but it is the right thing to do. We have been frustrated at times but now are more excited and energized than ever. USOBA and TASC are dying, they will not last much longer because they provide nothing for their members.
That is they point of this email, we have been aware and have read your blog for about the 10 months or so. Like the TSR, your words and opinions may hurt sometimes (we know this personally) but they are factual.”
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Matt,
I agree. The only way the good companies can come out and shine is if the bad guys are exposed and go away.
Steve
This is very encouraging. Surprisingly, this is not as “atypical” as you’d think. The TSR change is going to accomplish it’s mission of protecting consumers and this is a prime example of how that will occur. The “bad actors” will find out real fast that they will have to put the consumers first in order to stay in this game and will most likely vanish into another vertical. I was on that call too and was appalled as well. You are not alone. This industry will evolve to become a trusted industry if all the reputable firms will stand their “ethical ground” and stay the course. The world is watching. Let’s all work together to do the right thing.
This is very encouraging. Surprisingly, this is not as “atypical” as you’d think. The TSR change is going to accomplish it’s mission of protecting consumers and this is a prime example of how that will occur. The “bad actors” will find out real fast that they will have to put the consumers first in order to stay in this game and will most likely vanish into another vertical. I was on that call too and was appalled as well. You are not alone. This industry will evolve to become a trusted industry if all the reputable firms will stand their “ethical ground” and stay the course. The world is watching. Let’s all work together to do the right thing.
Matt,
I agree. The only way the good companies can come out and shine is if the bad guys are exposed and go away.
Steve