Debt Relief Industry In The News

Debtmerica Takes Stance Against Attorney Model Debt Settlement Companies

In a press release sent out today by Debtmerica they made some interesting statements regarding attorney model debt settlement companies.

“At Debtmerica, our staff all participated in making sacrifices so we could continue to pursue our mission of helping Americans become debt free and remain so. To see that consumers are readily engaging in our new debt resolution programs and achieving faster settlements is a significant milestone,” says Harry Langenberg, managing partner and Chief Operating Officer.

With this new ruling in place, unfortunately many less stable service providers have sought sanctuary by partnering with law firms who claim exemption from the FTC rule and continue to assess substantial up-front fees to consumers through these so-called “attorney model” debt settlement firms. Given the inherent restrictions placed on legitimate service providers by the FTC rule, some service providers felt they had no other alternative than to work around the contingency fee constraints or to close up shop. Debtmerica believes that these “attorney models” are nothing more than a temporary loophole in the FTC rule and expects the FTC to scrutinize the service providers operating in this manner. Debtmerica is also a proponent of states adopting regulations consistent with the FTC ruling while also allowing firms to assess a fair fee for services rendered.

“Debtmerica has worked tirelessly to adapt to the new FTC rule and is not gambling that any loopholes in the law will successfully circumvent it. While Debtmerica was well prepared to weather the challenges in our industry, we are warning consumers to be very careful about engaging with other companies that have chosen riskier business models that may jeopardize their stability and the success of their client programs,” explains Jesse Torres, Debtmerica’s other managing partner.” – Source

Hey Debtmerica, thanks for taking a stand. And for that I’ll even give you a link back to your site. Make that two links.

See also  Debtmerica Relief Vietnamese Television Commercials

Sincerly,
Steve

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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.

64 Comments

  • Debtmerica deserves to be in this hot water. We were pressured to enroll in their
    program a year ago and were sued by creditors within three months. You
    can do debt settlement/debt reduction yourself and if necessary, hire
    an attorney. Debtmerica lied to us, took our money and left us with
    more worries after the fact. The rep that enrolled us was gone within
    weeks and of course, the management was of no help and avoided all of
    our phone calls. We live in Northern California or we would have
    driven down to their Orange County/Santa Ana office and confronted
    them. People told us to sue them for the mess they got us into and with
    their high fees and hidden costs, you do not end up saving that much.
    Please do yourself a favor and do your homework and go with a local
    company if you can. LATEST NEWS: Debtmerica is NOW sister-company to
    “Optima Tax Relief” for people with income tax debt. So what they are
    basically going to do is cause more people MORE serious problems: last
    time I heard the Federal Government is more aggressive than credit card
    companies and banks. Innocent people will be hurt and lose their homes
    and have their wages garnished because Optima Tax Relief will make
    promises to them and have them blind-sided !!! Buyer Beware…..do your
    homework.

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