The following advertisement appeared online:
“DEBT Is HUGE Business-MAKE Money Next Week! Little Known Business! – $300 (Everything You Need To Make Money NOW!)
Price: 300 USD
Date listed: 1 month, 1 week ago
Been downsized? Out of work?One thing is for sure..SO ARE MANY OTHERS!EVERYONE has debt now!! EVERYONE needs help and solutons.This is a COMPLETE HUGE 2 Binder and CD course.Everything you need to get up and running immediately!Includes All Forms and templates,marketing, 2 huge binders..everything for you to start making money in as little as a week in a business many don’t even know exist.Check it out online here: www. debtnegotiationbusiness DOT comThis is the one and only most comprehensive course on debt negotiation and how HUGE a business it is. The person that made the course is active in the business for many years and since he has been in this business has not made LESS than six figures. First one takes it..$300 Location: Everything You Need To Make Money NOW!” – Source
In my opinion this is a dangerous advertisement because it appears to sell consumers on the ability to get into the debt relief and debt settlement business without any notice or warning that it is a highly regulated industry with many regulations and some very extreme consequences if you offer debt relief services without the proper registrations and licensing.
People that all for this sales pitch without knowing the liabilities they are walking into will find themselves on the wrong end of a lawsuit by a consumer or state regulator.
I find many of the messages on the main page to be problematic and either intentionally deceptive or uninformed.
Take the statement that the debt negotiation business is the “#1 recession proof business,” that’s just flat out wrong.
Example 1: Single Debt
Here is a perfect example of debt negotiation in action. Let’s say a client has a credit card debt of $10,000 and uses your debt negotiation service.
As a professional debt negotiator (don’t worry we’ll show you how), you make a simple call that takes about 10 short minutes of your time and you’re able to successfully negotiate a settlement for the amount of $3,000, saving your client $7,000 off their debt.
If you charge your client 25% of the savings (which we cover in the program), you would Earn $1,750 – Not a bad pay day for only a 10 minute call.
Of course, this example was only one debt; most consumers have multiple debts and owe a lot more than $10K. In fact, the average household has approximately $38K in credit card debt.
The site says that it only takes ten minutes to negotiate a debt for a consumer and on a $10,000 credit card debt you can make $1,7520.
The site appears to promote advance fee business debt settlement which is certainly problematic under the FTC Telemarketing Sales Rules.
Hopefully you see the profit potential so far, because it gets even better because there are several different ways to make money helping consumers. In the program we show you several different ways to legally earn up-front fees, monthly fees, and residual fees even with the recent FTC changes and regulations.
But the site does not appear to mention the Telemarketing Sales Rules which govern debt relief sales.
Those in the debt settlement industry will chuckle at the following testimonials from their site:
- I wanted to write to you and let you know that Debt Settlement is one of the easiest and quickest ways to make money that I have ever found. I’ve invested a lot in different businesses over the year and I hit the jackpot with your opportunity. You weren’t kidding when you talked about unlimited leads. Everyone is coming to me for help with their debts, which means money in my pocket. Thanks for sharing your knowledge and helping me start my own debt settlement service. Dean, Colorado
- Jason, I just settled a $22,346.03 debt for one of my clients for only $11,173.00, saving her $11,173.03 and I just made $2,793 with one simple call using one the information in your program. Needless to say, I’m no longer a skeptic and extremely excited and this is only one of her debts. Thanks for such a great opportunity and your support. Mary, Florida
This debt negotiation business kit is listed at $995.
And you’re screwed if you have any questions on the site.
You’ve got to laugh out loud at the refund policy for this program.
WHEN YOU COMPLETE YOUR PURCHASE, YOU, THE BUYER, ARE CLAIMING THAT YOU HAVE READ, ACCEPTED, AND FULLY UNDERSTAND THE TERMS OF THIS AGREEMENT, WHICH INCLUDES A 90 DAY CONDITIONAL MONEY BACK GUARANTEE. THAT MEANS THAT REFUNDS ARE CONSIDERED/ISSUED UNDER THE FOLLOWING TERMS & CONDITIONS.
CAREFULLY READ THE FOLLOWING DISCLAIMER AND PURCHASE AGREEMENT.
IN ORDER FOR A REFUND TO BE CONSIDERED THE BUYER MUST ADHERE TO THE FOLLOWING TERMS & CONDITIONS:
1. BUYER MUST PROVIDE PROOF OF THEIR EFFORTS IN SETTING UP THEIR OWN DEBT NEGOTIATION BUSINESS AND FOLLOWING OUR PROGRAM AND SYSTEM FOR AT LEAST 180 DAYS. THIS MAY INCLUDE, BUT NOT LIMITED TO PROOF OF BUSINESS REGISTRATION AND ANY LICENSING REQUIREMENTS.
2. BUYER MUST PROVIDE PROOF OF PROSPECTING EFFORTS, WHICH MAY INCLUDE CONTACT INFORMATION FOR POTENTIAL CLIENTS OR SAMPLE ADS.
3. DUE TO THE CONFIDENTIAL NATURE OF COPYRIGHTED MATERIAL AND SYSTEMS PROVIDED IN PRODUCT, BUYER MUST AGREE TO SIGN A NON-COMPETE AGREEMENT AS TO PREVENT ANY FUTURE USE OF COPYRIGHTED MATERIALS AND SYSTEM.
4. BUYER AGREES THAT IF A WEBSITE HAS BEEN CREATED AND OR HOSTED FOR BUYER THAT BUYER AGREES TO PAY A FEE OF $495 FOR SUCH SITE. FEE WILL BE IMMEDIATELY DEBITED FROM ANY REFUND.
I’m going to call that refund policy, bullshit. Once an unsuspecting consumer has walked into this minefield of regulations and realizes all the liability they just spent $995 to get into they can’t get a refund unless they apparently setup and run the debt relief business for at least 180 days. But the program only has a 90 day money back guarantee. So how does that work?
Additionally National Debt Consultants wants you to potentially hand over the information of consumers you might have contacted, sample ads, and to enter into a non-compete agreement. And then there is an additional charge of $495 for a website.
So let’s say you get snookered into buying this program and don’t get the 90 day refund after working the program 180 days. Well the terms of the program say you can’t even dispute the charge on your credit card.
Buyer agrees that if he/she causes a fraudulent dispute claim that results in a chargeback against the Seller’s account, that the Seller is authorized to re-charge the Buyer’s credit card that was used for the original purchase to the extent that will make the Seller whole. Buyer agrees to, in addition to actual damages, pay to the Seller liquidated damages of an amount equivalent to US $10,000 for every separate fraudulent action Buyer commits. – Source
My advice to anyone thinking of falling for all of this is to run away!
The page says it presents the message of Jason Oswald of National Debt Consultants. The site does not list where the company is located. The site lists a 763 area code on the contact page which is typically in Minnesota. A search of registered companies in Minnesota found a company under the name “National Debt Consultants.” – Source
The State records say the company is located at:
13055 Riverdale Drv NW
Minneapolis MN 55433
This actually appears to be a mail drop address and not a physical office location. Interestingly enough it appears the company gets its own address wrong. Using the street name and zip code the correct street name is actually Riverdale Boulevard and not Riverdale Drive.
State records say the company was incorporated on April 5, 2005 and not the 2001 date as claimed on the website.
The following information appears only because this entity has hit my radar and has raised a concern and I do not want to lose this information. I’m keeping it handy in case issues appear in the future.
If you have had any experience with this program, please post your comments and feedback in the comments below.