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Why is TASC Saying Consumers Pay Really High Interest Rates in Credit Counseling?

By on February 7, 2011
Why is TASC Saying Consumers Pay Really High Interest Rates in Credit Counseling?

A tipster (send in your tips here) just brought this video to my attention. It features Dave Leuthold the executive director of TASC, until recently. I’m not sure what happened over at TASC but it looks like they cleaned house. In fact as of today they are down to 58 members and I can’t find a mention of Leuthold there anymore.

The video makes the following puzzling statements:

  • Today a lot of people don’t qualify for bankruptcy. How is that true?
  • Leuthold agrees that people pay very high interest rates in a credit counseling program.
  • He says that consumers are first interviewed to make sure debt settlement is right for them. Funny, none of the TASC members I’ve shopped have done that.
  • At the time this was recorded most or nearly all consumers were paying upfront fees for their member debt settlement programs but yet Leuthold says member companies are doing what is best for consumers. Really?
  • He goes into the “tough” standards members must comply with. Then why do so many members not comply?
  • Leuthold says they are in favor of regulation, but at the state level.


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READ  Examples of Deceptive Official Marketing Sent Out By Debt Settlement Companies to Trick Consumers. Some are Members of TASC & USOBA.

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About 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.

10 Comments

  1. Guest

    February 8, 2011 at 12:38 pm

    Follow the trail. Century Negotiations -> Century Mitigations -> Legal Services Support Group -> LHDR. LSSG does the marketing for LHDR. Century Mitigations is a front for CNI/Leuthold to not be named directly.

  2. Confused DS

    February 8, 2011 at 12:12 pm

    An affiliate would typically result in sending business to LHDR. This would translate to Dave Leuthold supporting the LHDR advance fee model. I was under the impression he is on the board of directors with LHDR as a backend service provider. Just confused as to how he can claim to support DS regulations?

  3. SeanDSLegalPlan

    February 8, 2011 at 11:29 am

    Are you sure? Went to his website- is he simply an affiliate of LHDR?

  4. Confused DS

    February 8, 2011 at 10:53 am

    This is the same guy that supports Legal Helpers Debt Resolution and sends them a ton of business. What am I missing? He supports regulation yet is working the attorney model in attempt to work aorund regulation? LHDR claims to reduce a 30K debt for 27K. What a great deal for the client…

  5. Confused DS

    February 8, 2011 at 3:53 pm

    This is the same guy that supports Legal Helpers Debt Resolution and sends them a ton of business. What am I missing? He supports regulation yet is working the attorney model in attempt to work aorund regulation? LHDR claims to reduce a 30K debt for 27K. What a great deal for the client…

    • Anonymous

      February 8, 2011 at 4:29 pm

      Are you sure? Went to his website- is he simply an affiliate of LHDR?

      • Confused DS

        February 8, 2011 at 5:12 pm

        An affiliate would typically result in sending business to LHDR. This would translate to Dave Leuthold supporting the LHDR advance fee model. I was under the impression he is on the board of directors with LHDR as a backend service provider. Just confused as to how he can claim to support DS regulations?

      • Guest

        February 8, 2011 at 5:38 pm

        Follow the trail. Century Negotiations -> Century Mitigations -> Legal Services Support Group -> LHDR. LSSG does the marketing for LHDR. Century Mitigations is a front for CNI/Leuthold to not be named directly.

  6. Bobl

    February 8, 2011 at 9:30 am

    Dave is simply reiterating the common industry myths. Truth be told, chapter 7 bankruptcy is by far the best deal for consumers. Isn’t it better to be debt free in 3 to 6 months for no cost (other than the legal expenses)and have your credit rehabilitated in two years than become debt free in three years at 50 percent of the debt and then first wait two years to rehabilitate your credit? Consumers that are against bankruptcy going into the debt resolution process are easily turned around once they fully understand it. As for qualification, the biggest hurdle has historically been home equity and the sinking housing market has taken care of that for most people.

    Debt settlement, done right, is a viable remedy under the appropriate circumstances. Unfortunately, the vast majority of people participating in the strategy have been ill advised.

    Consumer credit counseling is a remedy that is appropriate for a very narrow band of consumers. It’s a basically a model built on propaganda on the part of banks, legislators, and the media.

    But there is a fourth strategy rarely spoken about by anyone that is especially appropriate today and that is for a consumer to do nothing. More and more people are judgment proof and living off of a fixed income and the best advice anyone can give them is to simply walk away. Unfortunately, too many of these people are ending up in debt settlement or bankruptcy throwing good money after bad.

  7. Bobl

    February 8, 2011 at 2:30 pm

    Dave is simply reiterating the common industry myths. Truth be told, chapter 7 bankruptcy is by far the best deal for consumers. Isn’t it better to be debt free in 3 to 6 months for no cost (other than the legal expenses)and have your credit rehabilitated in two years than become debt free in three years at 50 percent of the debt and then first wait two years to rehabilitate your credit? Consumers that are against bankruptcy going into the debt resolution process are easily turned around once they fully understand it. As for qualification, the biggest hurdle has historically been home equity and the sinking housing market has taken care of that for most people.

    Debt settlement, done right, is a viable remedy under the appropriate circumstances. Unfortunately, the vast majority of people participating in the strategy have been ill advised.

    Consumer credit counseling is a remedy that is appropriate for a very narrow band of consumers. It’s a basically a model built on propaganda on the part of banks, legislators, and the media.

    But there is a fourth strategy rarely spoken about by anyone that is especially appropriate today and that is for a consumer to do nothing. More and more people are judgment proof and living off of a fixed income and the best advice anyone can give them is to simply walk away. Unfortunately, too many of these people are ending up in debt settlement or bankruptcy throwing good money after bad.

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