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Will We Still Have a Job in Debt Settlement?

“Dear Steve,

I’m many of the employees that have recently found themselves wondering what is going to happened to my job at the end of September. I work for a company called [ ] and their back end is serviced by Legal Helpers Debt Resolution or Eclipse (Not sure what the relationship is there).

Our boss recently told us that we are going to be ok and we will continue to do business as usual, which I think is a bunch of BS. This is the same guy that pays us 7% commission, charges full charge backs, and if you don’t hit your goal he takes up to 30% of your paycheck.

He has never asked us to sign a commission plan and when I called the Texas Workforce Commission they informed me that they cannot take anything from your paycheck unless they have it in writing, except of course child support, or any other government enforced reduction. Back to my question!

Can these people really get around the new legislature? If they do will they be able to pay me the same commission? To be honest I think this is going to be a blessing, I’m tired of making these people rich while good people are getting ripped off. I’ve been doing this for almost 4 years now (started at CSA) and I’m ready for a change.

Love your website!”

I think the experts have spoken quite clearly that business as usual will not be tolerated, or even legal, past September 27, 2010 for good faith documents, and October 27, 2010 for the upfront fee ban.

Rather than listen to me or the Federal Trade Commission I think there are two recent posts from others which will speak louder to you. The first is from the law firm of Loeb & Loeb. This firm represents a number of debt settlement companies as clients and they issued a “you better comply” notice. Read Loeb & Loeb Law Firm Issues Guidance to Debt Settlement Companies Looking at FTC Loopholes.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
See also  Former TASC Executive Director Says Legal Helpers Debt Resolution is Awesome and Will Stay the Course

This next post comes from an executive at a debt settlement that finally came to their senses. Read Debt Settlement Company Says “Enough is Enough” and Works Hard to Comply With FTC.

There are several class action lawsuits going around Dallas at the moment regarding debt settlement companies and pay issues. Here is one as an example. Read ABC Debt Relief, The Debt Answer, Lloyd Ward & Associates, and Lloyd Regner Sued By Employees.

The back room talk among the people I normally talk to is that debt settlement companies are probably going to keep telling debt settlement sales reps that everything is going to be fine up until the last minute so the sales team will keep selling.

I can’t tell you what to do but I can share my advice. If I was in your position I would start looking for another job. If the company is unwilling to provide you with a plan that complies with the new FTC rules coming into effect then they may either be keeping something from you or they don’t plan to comply. Either way, I don’t see that as good news.

But before you make any assumptions about what your company intendeds to do, I would speak to a supervisor or manager and talk this issue over honestly and frankly.

Please update me on your progress by

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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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