A debt relief industry insider asked me to take a look at the Debt Alternative Center website. They expressed some deep concerns that they were promoting the debt restructuring product and FDCPA Protection products.
They also asked me to look at the Legal Debt Pros site as well.
I’ve said it before, debt restructuring is going to turn out to be a stinker product. It’s just fundamentally flawed. Don’t believe me, read Consumer Debt Restructuring 101: What It is and Why You Should Avoid It.
But Here is Why Debt Restructuring is Going to be Bad
So what mainstream provider is promoting debt restructuring to consumers? We know the folks at Cyrus Global are, but they don’t have a good reputation.
The tipster (send in your tips here) said a site for Legal Debt Pros does so I went and took a look. And yes, they do. But here is the interesting thing. If you click on their BBB logo on their site it takes you to their BBB page that says:
ALERT Brian Linnekens, the principal of Legal Debt Pros, is also the Principal for Home Credit Law Center, which has a poor rating with the Bureau based on a pattern of serious complaint allegations and a government action. A separate report on Home Credit Law Center which can be viewed at http://www.labbb.org/BusinessReport.aspx?CompanyID=100091773.
Brian Linnekens is also a principal for Capital Legal Network dba Financial Legal Network, which has a poor rating with the Bureau based on their failure to obtain registration with the State Bar of California as a lawyer referral service. A separate report on this company is available at http://www.la.bbb.org/business-reviews/Attorney-Referral-Services/Capital-Legal-Network-in-Los-Angeles-CA-100101253.
The Legal Debt Pros page promote debt restructuring by saying “A personal debt restructuring program can bundle your many, high-interest debts into one more affordable package. This can often include an outright purchase of your debt from your creditors. Your interest rates may be reduced, your monthly payment may get smaller, and more of your money may go toward the principal of your debt instead of interest payments. On average, debt restructuring customers become completely debt free from their unsecured debts in two to four years.”
That’s a lot of maybes and might be, but what is reality?
They fail to provide any data to support their claims and this solution is not two to four years old so I’ve no idea how they are backing up the statements.
Debt Alternative Center apparently plans to make a big splash at the upcoming Evolution trade conference to promote debt restructuring and something called FDCPA Protection.
My industry insider says the FDCPA Protection product is when a debt relief company charges consumer a flat rate per card for some type of debt collection service to watch for violations but from what was described to me it does not address the underlying debt.
But isn’t the underlying issue that the reason the consumer is getting collection activity is because they have a now broken contract to repay debt?
I can’t wait to write about this new FDCPA Protection product when we learn more.
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