Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Steve's Thought of the Day
Maybe it is time to read what the Bible really says about bankruptcy instead of listening to the assumptions of others. Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
A debt settlement insider sent me the following email they received from Global Client Solutions.
Subject: IMPORTANT NOTIFICATION from Global Client Solutions – State of Connecticut
The following is pursuant to direction from the State of Connecticut, Department of Banking:
Effective May 16,2012, customer fees assessed to account holders residing in the state of Connecticut may not be processed until your organization provides written notice to Global that it is either (i) licensed for debt negotiation by the State of Connecticut or (ii) exempt from such licensing.
Please be advised that if your Connecticut consumers contracted with entities/Affiliates other than your organization, then such written notice must be provided from those corresponding entities/Affiliates.
Frankly I’m surprised more states have not taken similar action. If they had years ago the debt relief space would look much different today.
Sincerely,
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.
2 thoughts on “Tipster Says CT Cracking Down on Global Clients”
I applaud CT for taking this action but I’m afraid what they are not realizing is that it causes more harm than good.  Now before you haters get your panties in a bunch, hear me out. Â
I absolutely agree that every company should be licensed, hell if it were up to me all sales agents would be fingerprinted but it’s not a matter of not wanting to get licensed or staying away because of fee caps.Â
The ONLY reason companies will stay away from CT and any other state that is anti-settlement is because of the $40,000 bond requirement and licensing costs which total more than $5,000 a year…and that just for one state! Â
Take for example an average consumer with $30k in debt in a 36 month program with a 10% fee cap and an average settlement of 40%, this will create about $600 a year in revenue.  The cost per acquisition these days is around $250/$300.  Remember that it takes at least 6 months to break even so contrary to popular belief (unless you are well funded with investment capital) growth from revenue will be very slow and when you take the cost of licensing combined with the 10% fee cap and do the math it just doesn’t add up.Â
My point is that there are many ethical, hard working debt relief companies that can provide no upfront fee services to help consumers in CT avoid bankruptcy but cannot afford the high cost of licensing.  The bond requirements are overkill.  There is very little to no risk to consumers when they are able to have a company negotiate their debt and not get paid until each each settlement is approved by the consumer and settled so there is no longer a need for the bonds.  Simple E & O insurance would provide sufficient protection against any fraud.
These rules create an environment where bankruptcy is the ONLY option for CT consumers in need of debt relief. Â
Have to assume same for Notworld. Who are the other escrow players? CT has a fee cap right? Affiliate licensing too? Even if the affiliate is part of a “legal model”? The agony of it all….
Exemptions on file? Will a note from my attorney work? Are affiliates selling a legal model exempt by extension, or would the attorney have to vouch for their affiliates? It would seem from the limited read that the attorney might be exempt, but the sales affiliate is not? After this deadline, is it not safe to assume the GC list is already expected at the CT department of banking? Is it safe to assume the department already has a list and will simply cross reference the May 16 list with one already compiled and begin target practice thereafter? If the list in hand now has a company name, and the May 16 list does not contain that same company name, would that name then be a coke can atop a fence post on the back 40?
Totally true about how this approach if used by all states that require licensing and also have clearly spelled out exemptions providing an effective check and balance. This is a very small and relatively un-intrusive item to enact that would hold the escrow resources accountable then trickle out from there.
Giving up CT would not trouble most companies. Giving up many more states would. This should be circulated to every state agency tasked with oversight of these businesses.
I applaud CT for taking this action but I’m afraid what they are not realizing is that it causes more harm than good.  Now before you haters get your panties in a bunch, hear me out. Â
I absolutely agree that every company should be licensed, hell if it were up to me all sales agents would be fingerprinted but it’s not a matter of not wanting to get licensed or staying away because of fee caps.Â
The ONLY reason companies will stay away from CT and any other state that is anti-settlement is because of the $40,000 bond requirement and licensing costs which total more than $5,000 a year…and that just for one state! Â
Take for example an average consumer with $30k in debt in a 36 month program with a 10% fee cap and an average settlement of 40%, this will create about $600 a year in revenue.  The cost per acquisition these days is around $250/$300.  Remember that it takes at least 6 months to break even so contrary to popular belief (unless you are well funded with investment capital) growth from revenue will be very slow and when you take the cost of licensing combined with the 10% fee cap and do the math it just doesn’t add up.Â
My point is that there are many ethical, hard working debt relief companies that can provide no upfront fee services to help consumers in CT avoid bankruptcy but cannot afford the high cost of licensing.  The bond requirements are overkill.  There is very little to no risk to consumers when they are able to have a company negotiate their debt and not get paid until each each settlement is approved by the consumer and settled so there is no longer a need for the bonds.  Simple E & O insurance would provide sufficient protection against any fraud.
These rules create an environment where bankruptcy is the ONLY option for CT consumers in need of debt relief. Â
Have to assume same for Notworld. Who are the other escrow players?
CT has a fee cap right?
Affiliate licensing too? Even if the affiliate is part of a “legal model”?
The agony of it all….
Exemptions on file? Will a note from my attorney work? Are affiliates selling a legal model exempt by extension, or would the attorney have to vouch for their affiliates? It would seem from the limited read that the attorney might be exempt, but the sales affiliate is not? After this deadline, is it not safe to assume the GC list is already expected at the CT department of banking? Is it safe to assume the department already has a list and will simply cross reference the May 16 list with one already compiled and begin target practice thereafter? If the list in hand now has a company name, and the May 16 list does not contain that same company name, would that name then be a coke can atop a fence post on the back 40?
Totally true about how this approach if used by all states that require licensing and also have clearly spelled out exemptions providing an effective check and balance. This is a very small and relatively un-intrusive item to enact that would hold the escrow resources accountable then trickle out from there.
Giving up CT would not trouble most companies. Giving up many more states would. This should be circulated to every state agency tasked with oversight of these businesses.