Debt Settlement Industry Benefits from Self-Regulation Effort

Responding to New York Attorney General Andrew Cuomo’s recent subpoenas to 14 debt settlement firms and the growing outcry from consumer protection organizations over industry practices, debt settlement companies now have access to online employee training that teaches counselors how to run an ethical – and profitable – business that delivers real value to the client. Industry experts and consumeradvocates have collaborated to develop the comprehensive e-learning curriculum, The training program accepts Mr. Cuomo’s challenge to rein in the renegade elements within our industry,” said Global Debt Systems spokesperson Boun Vilailath. “People facing financial hardship, who are just trying to do the right thing, should not be victimized. Debt settlement is a valuable tool that can help many people in debt … but not most people in debt. The program teaches companies how to implement a checklist approach for screening prospective debt settlement clients that eliminates ill-suited applicants and identifies potential problems that could arise for viable program candidates. That process mandates that the consumer make an informed acceptance of those risks before entering a debt settlement program.”

The program also advocates for a simplified, results-based fee structure using a contingency fee model similar to that of a plaintiff’s attorney. The fee structure should facilitate the consumer’s quick completion of the program and require payments to the debt settlement company only after a settlement has been negotiated and accepted by all parties. The debt counselor provides easily defined services with predictable costs, similar to a real estate agent, to represent and facilitate the buyers and sellers of settled debt.

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