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TASC Responds to IL AG with Facts
Updated 4/15/2010 - 10:03am
TASC corrects misstatements made by AG Lisa Madigan, Chicago Sun-Times
Madison, Wis. (PRWEB) April 15, 2010 -- The Association of Settlement Companies (TASC), the debt settlement industry’s largest trade group, today responded to misstatements and inaccurate information released by Illinois Attorney General Lisa Madigan and the Chicago Sun-Times.
The Association of Settlement Companies
“There are many good debt settlement companies who are helping tens of thousands of consumers resolve their debt when no other help is available,” David Leuthold, executive director of TASC, said. “Characterizing the entire industry negatively is wrong and only misleads consumers in the end.”
TASC is correcting the following statements made either by Madigan and/or that appeared in a April 12, 2010 article in the Sun-Times:
Misstatement: Labeling debt settlement companies as “scam artists.”
Fact: In 2009, TASC members alone settled more than $1 billion in debt. Consumers paid approximately $400 million to creditors to resolve that debt owed, saving approximately $600 million, thus showing the efficacy of debt settlement.
Misstatement: Companies charge “large up-front fees … (of) 15-20 percent” of the debt before a single debt is settled.
Fact: TASC limits the fees that can be taken in the early part of the program and supports fees that are spread out over time, typically 18 months or longer and average only around 6-7 percent per year.
Misstatement: “Approximately 65 percent of people who sign up drop out before any of their debts are settled” and only “1-3 percent of people who sign up have all their debt settled.”
Fact: TASC statistics show that approximately 35 percent of people finish the entire program, a rate higher than Chapter 13 bankruptcy and significantly higher than debt management plans offered by non-profit credit counseling companies.
Misstatement: Madigan’s bill “doesn’t outlaw debt (settlement).”
Fact: The permitted fees for performing debt settlement under this bill would not cover the costs of the service and effectively bans debt settlement. Meanwhile, non-profit credit counseling companies can charge fees of up to 300 percent more than that permitted for debt settlement companies under the bill.
Misstatement: Consumers should turn to credit counseling instead of debt settlement.
Fact: Many consumers cannot afford credit counseling since the service only reduces the interest rate and not the principal amount owed.
Fact: Debt settlement is an additional option, not a replacement for other debt relief help.
“TASC supports the open and honest disclosure to consumers of both the risks and benefits of debt settlement programs,” Leuthold said. “We wish the press and the Illinois Attorney General would do the same.”
Updated 4/13/2010 - 7:00pm
Debt Settlement Articles like any other article are recognized by the search engines in the same way, yet debt settlement affiliate recruiters are finding, that utilization of an article spinner enables them to "spin and spam" the content by replacing all the synonyms in the article with the rationale that the search engines will think the article is unique. All links in these articles gets penalized by the search engines for this and may even black listed. Search Google about this for more information.
Ironically, Google has already made it clear that republishing another authors content without all of the original articles links and author information is considered plagiarism. For instance, you may get a call from some nim-wit claiming to want to give you landing pages and free debt settlement articles, so he can get a piece of your payout unbeknownst to you!
Moreover, the articles they're giving you have may have been copied and the links routing to your websites will crush YOUR search engine rankings. Call me (Rich Preisig) if you have questions or need help. (203) 828 - 0124.
The specific software program we're talking about can take an article and rewrite it based upon switching all the synonyms, but c'mon, I hope none of you are that naive. Google is worth what and these amateur software is more advanced than Google's algorithms?
The Resolution: Depend on real, unique debt settlement content that makes for organic traffic to your landing pages or debt settlement website at Debt Settlement Articles.
Like anything else, what sounds too easy and too good to be true has always been and will always be for the parasites who are only able to take 10% of the information and run with it.
You have undoubtedly heard or read that debt settlement affiliates are swiftly making the changeover to the far more advantageous attorney-based debt resolution model. It’s simple to understand why this is when you consider the “green state” model, which defines those States that do not require an attorney for settling a consumer’s debt.
While it’s true that each version of the two debt fulfillment models bear a strong resemblance, there is an equally compelling reason why attorney debt settlement, as it's often called is strongly preferred and quickly gaining acceptance. from debt settlement affiliates.
Debt settlement net branches and affiliates new to the industry began by just signing on with a “back-end debt settlement”, which goes to show you that the process can be implemented by absolutely anyone. That’s right – anyone at all. The individuals or companies offering a client this service are referred to as “debt settlement affiliates” and, unfortunately for the consumer, it is entirely possible they have little or no education or accountability when it comes to actually providing this service in a competent manner.
Rich Preisig adds, "It is very interesting how many of these back-end debt settlement companies have appeared on the scene in the last several months or more as well, how many green states are now red states." As in any professional business environment, when a service is in high demand, said service providers become prolific. This is when the time-honored warning of “caveat emptor” enters the picture! The consumer seeking to settle their insurmountable debt most likely has no comprehension with regard to the difference between a debt settlement affiliate and attorney-based debt resolution. Of equal dismay, they probably don’t understand the final impact of having made the correct choice between the two models.
As previously stated, a debt settlement affiliate can be literally anybody; there is no impediment to entering this business. It stands to reason then, that just anybody can get the job done. Or does it? Let’s backtrack for a moment and think about the state of mind of an individual or couple whose debt consumes their everyday life. They are in a very anxious state of mind and overwhelmingly distressed. Their preoccupation with what has happened, as well as with what needs to happen next, doesn’t necessarily translate to astute decision-making. A debt-laden consumer just wants to make things right again and move on with their life. This renders them “ripe for the picking” by debt relief businesses who, more often than not, don’t have the best interests of the client at the very top of their agenda. At best, a debt settlement affiliate can be elusive when the consumer has questions, or perhaps just plain antagonistic. But, at worst, they could be sloppy and make mistakes that end up costing the client more!
"Being an unregulated industry leaves the door wide open to seriously-questionable practices, and this is why the attorney-based debt resolution model has become the favored program," states Richard Preisig. Because the consumer doesn’t know the most important questions to ask, exactly what results to expect and whether the individual representing them actually knows what they are doing, they are exceptionally vulnerable. Article 1 of 2.
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With the right debt resolution content, you too can start driving targeted traffic to your website, landing pages and lead capture forms. Article
Debt Settlement Affiliates Search for Services Solely Performed by Attorney's. The green state model is no longer a viable option to rely on as more state legislation is brewing.
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Credit Card Statistics, Debt Settlement Industry Facts, Consumer Debt Statistics and Credit Card Figures.
This page contains credit card statistics including statistics on credit card debt, credit card delinquencies, credit scores, credit card interest rates, bankruptcies, average credit card debt and more. View Statistics
The Debt Relief Business and specifically, the attorney based debt resolution model is considered the new and preferred way of helping consumers with their insurmountable credit card debt. (This assumes that bankruptcy is not a more suitable option.)
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