Business Models Debt Relief Industry

Let’s Play Do They Comply. Isn’t This Bankruptcy Fee Splitting?

A tipster (send in your tips here) brought my attention to rest on the following page from the Debt Alternative Center.

The question is, isn’t this legal fee splitting?

DMP Shocker

On the same site,, I came across the page to be a debt management affiliate which says the affiliate can charge the consumer from $300 to $1,400 for enrolling in a debt management plan? Now that’s extreme.

Commissions and fees work as follows:

There is a charge for a Product Fee: price is $300min to $1400 max, the affiliates collect this fee, from their client through their own merchant accounts. A fee of $25 is then due to THE DAC.

There is also a $100 fee for shipping and filling the order for the client. Affiliate also pays this fee.

Client pays $34.50 a month, billed as a creditor in the program.

The Service fee is determined by the State and consumer’s unique case, ranges $5-$120. – Source

This site calims to be called the Debt Alternative Center and located at 385 Van Ness Ave, Torrance, CA 90501. The State of California has not registered business under that name. You would think that a “national backend service” company would at least be registered to do business in their own state.


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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.

1 Comment

  • 385 Van Ness Ave, Torrance, CA 90501 is actually where their P.O. Box is; they don’t actually have an office. Why? Because they aren’t actually a back-end service provider but are rather a marketing ‘middleman’ that consists of 3 employees who work from home.

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