What are the rules for being in a debt settlement program?
1. DO NOT tell the client to tell their creditors that they are enrolled on a debt settlement program. In fact, if they ask you, “Mr. Sales Rep, what should I tell my creditors now that I have agreed to do this thing?” , tell them to not take any action at this particular moment in time until they speak with your servicing department (us). DO tell them that you will be sending their file over to your servicing department for approvals, and once they are approved, an experienced orientation representative will contact them and tell them exactly how to handle the creditor calls.
Note: When the client does tell his creditors he’s working with a 3rd party, the creditor will generally refuse to take any reasonable settlement. As an actual example, Bank of America has been sending some of our clients a letter stating that they are unwilling to settle for anything under 70% (only a 30% savings for the client) because they heard the client was enrolled in a debt settlement program. Please help us prevent the client from jeopardizing their own settlements by not telling them to do this.
2. DO NOT tell the client to not speak with their creditors. This is illegal. Simple as that. You can use the same line as above – tell them that the servicing department will tell them exactly how to handle the calls.
3. DO NOT tell a new client that they can change their first draft date or remove creditors once they make to our office. The client needs to be ready to go before I approve the deal.
Note: The client may make changes after they have cleared their first payment…but please do not slap together an inaccurate contract and expect us to complete it for you. It needs to be complete, accurate, and ready to go as-is when it arrives in the Approvals email.
4. DO NOT tell the client that their accounts will be handled by an attorney. This is incorrect. DO tell them that their accounts will be handled by trained negotiators (neither paralegals or attorneys) under the supervision of a law firm.
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