Business Models Debt Relief Industry

Debt Collection Attorney Wants to Sell You Debt Settlement Business Opportunity

This article comes from a fabulous tipster (send in your tips here) that brought the following web advertisement to my attention.

What caught my eye initially is the selling of a business opportunity with a “Law Firm with more than 17 years in the Debt Collection Business.” – Source. So who is the attorney or law firm? If it is such a great benefit then why is it a secret?

The following part of the ad seemed interesting as well.

  • “There is absolutely no selling required on your part”
  • “Substantial profits from a personal service business without inventory!”
  • “You can expect to earn an average of $1400+ per client!”

So let’s head off to VerifiedDirect.com and see what we can learn.

Verified Direct

VerifiedDirect.com is owned by Mark Hyman, 7380 Wisteria Ave., Parkland, Florida 33076. There is no Mark Hyman listed as a member of the Florida Bar. – Source.

VerifiedDebt.com is also owned by Mark Hyman.

The mission of VerifiedDebt.com:

We’re a Debt company that values integrity as much as fees. A company that will always be open, accountable, and honest. Yes, honest. We won’t deal in half-truths, kindatruths, or truths only busied in fine print. Tha’s because we don’t have anything to hide. We’re always going to give it to you straight. And it means having rates that are always among the most competitive in the country.

VerifiedDebt and VerifiedDirect both lead to the Law Office of Adam J. Katz, PA, 5571 N. University Drive, Suite 204, Coral Springs, FL 33067.

VerifiedDirect promotes its business opportunity with the following video:

[quicktime]https://getoutofdebt.org/wp-content/uploads/VerifiedDirect.mov[/quicktime]

Now that we know that the law firm behind Verified Direct is the Law Office of Adam J Katz, PA is the video really true when it says, “VerifiedDirect has built the infrastructure with the top law firm that specializes in the debt resolution industry.” So why then is Adam J. Katz listed by the BBB as a patent attorney? – Source

By the way, the VerifiedDebt name is a trademark of Verified Debt, LLC at 5571 N. University Drive, Suite 204, Coral Springs, FL 33067. – Source

VerifiedDebt, LLC is under the control of Mark Hyman and Adam Katz. – Source

So when Verified Direct says it is Law Firm Owned, is that true? It certainly does not appear to be true from the articles of organization. – Source

Okay, the information I just gave you was for VerifiedDebt and not VerifiedDirect, for two reasons. As I write this the company Verified Direct is administratively dissolved and not active. – Source. Secondly, it was formed by Mark Hyman and Adam Katz personally and not as a law firm. – Source. So how can it be Law Firm Owned as claimed?

Then there is also Verified Debt Solutions, Inc. in which Adam J. Katz is the president. – Source. But Verified Debt Solutions, Inc. does not appear to be the owner of VerifiedDirect.

Another issue is the ABA logo on the site. Previous communications with the ABA reveled they don’t have company memberships, just individual memberships, so how can Verified Direct be a member?

Adam Jeffrey Katz, Esq

The first thing that caught my eye when I landed on the website for Adam J. Katz at adamjkatzpa.com is that he is displaying language on the bottom of the site relating to legal advertising but if VerifiedDirect is law firm owned, why isn’t it on that site as well?

The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

The “creed” on his website doesn’t even mention debt settlement, so how can he be a leader in the field as the VerifiedDirect video claims?

I represent clients with passion, dedication, & integrity. I have been practicing Law in South Florida past twelve years. After leaving my position as a lead felony litigation attorney with the office of the public defender, 17th Judicial Circuit, I established my firm, Law Offices Adam Jeffrey Katz, P.A. As a sole practitioner, I recognize the needs & concerns of my clients. Since establishing my practice, I have litigated thousands of criminal, family, & debt collection matters. My practice is predicated on referral. I believe that the best form of advertisement is a satisfied client. Should you be in need of legal advice or services, I welcome you to contact the firm & schedule a consultation. – Source

The Florida Bar record for Katz says his email address is at NationalRecovery.net.

National Management Recovery Corporation is a debt collection company and the president is Jill S. Katz (source) and the address is in the suite next to that for VerifiedDirect and VerifiedDebt. According to public records it is located at 5571 N. University Drive, Suite 203, Coral Springs, FL 33067.

The Marketing Material

The following marketing information is shown on the VerifiedDirect website that marketing agents will apparently use.

Anyone else spot an issue these create with the FTC telemarketing sales rules? And speaking of sales rules, the business opportunity site doesn’t really speak about the licensing and bonding that sales agents may require. Nor does it seem to mention that fees can’t be collected in advance. It doesn’t even mention the tremendous liability sellers may incur in promoting debt relief services.

So after all of that the product the VerifiedDirect says agents will sell is:

VerifiedDebt® Solutions provides you with the tools allowing you to control your income and expenses to take advantage of this key banking principle. VerifiedDebt® Solutions reduces the amount of time it takes to pay off your mortgage by half or more. No gimmicks, no smoke and mirrors, just a simple method that uses complex calculations to determine your financial position on a daily, weekly, monthly and annual basis.

The saving to you can be enormous. For example, on a $250,000 30 year mortgage, you can save as much as $185,000 and reduce the time to payoff to 9 years!

VerifiedDebt® Solutions can help you in other ways too by using the same methodology to also pay off Credit Cards, Student Loans, Auto Loans, Business Loans and Personal Loans. The software can help you create a compelling strategy to reduce debt that you can visualize immediately. – Source

Odd, that doesn’t sound like debt settlement at all, that sounds exactly like a roll down calculation that is available for free on the web in many places.

And for that VerifiedDirect is going to charge $1,595? Really?

But the original ad said the agent could make $1,400+ per client and the Verified Direct site says the compensation is $600 per sale. Which is it?

Bottom Line

Here is the bottom line for me, it just does not make any sense on so many levels. I’d suggest that if anyone is interested in this business opportunity that they find an experienced debt settlement professional to discuss it with first.

Remember back at the beginning when I said the advertisement for the business opportunity did not require selling? Then why does the VerifiedDirect site say under the heading MARKETING AND SALES SUPPORT, “We want our Marketing Agents and the people that Sell our services…” – Source. So there is selling required.

And in closing let me share this last gem from the VerifiedDirect website with you.


VerifiedDebt.com Archive
VerifiedDirect.com Archive

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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.

3 Comments

  • THIS MAN IS A MAFIA CRIMINAL

    Adam J Katz failed to show up at two of three court hearings. He ignored at least 12 separate emails asking for subpoena’s to be filed until he requested 2,000 as “expenses” on top of his already high retainer. He fails to answer phone calls, does not show up for in person meetngs, and has no idea what is going on in the cases he is representing. I am disgsted by his service, and at my first sign of anger, he withdraws as council, after MONTHS of doing ABSOLUTELY NOTHING. He hs informed me in the past of his association with the American Mafia, and it is my belief that his inaction is a result of collusion between him and that criminal organization. I will be filing criminal charges.

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