photo © 2008 Thomas | more info (via: Wylio)I’ve suggested to several debt settlement companies that they participate in a life raft rescue plan I’d like to put together to help save consumers that may be abandoned as debt settlement companies fail. The response from the companies I’ve talked to has been good and I’d like your feedback on the plan as well.
If there are failures of advanced fee debt settlement companies, consumers are going to be abandoned in big numbers. Some of the companies that have been approached to purchase these failing companies have told me that the fees have been spent but only about 5% of the total debt has been settled. Not a good scenario.
The only solution at that point is for a consumer to start all over from scratch and pay fees all over or something else. The something else I’m suggesting is that the debt settlement industry rally around a rescue plan for consumers that have the funds to settle now but have been cut loose or abandoned by their debt settlement company.
This is not a marketing opportunity for participating companies. This is a rescue mission to demonstrate those left in the debt settlement world have the responsibility and willingness to clean up the industry and protect consumers.
There is no logical plan that would save everyone harmed but together we can save a narrow band of some.
My proposal is that for consumers that are ready to settle with cash on hand and can demonstrate they have been just abandoned by their previous debt settlement company that participating companies offer to negotiate the final settlement on those accounts for a flat rate of $199 per account.
Participating companies can limit the number of consumers they will take on.
I spoke with the FTC about this this morning and while they can’t make any specific statement about the fee, they were impressed a rescue mission was planned.
I’m asking for no money from companies to participate. All I ask is that companies post a link to the page I will create with the master list of debt settlement providers willing to do the right thing.
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