Running A Debt Settlement Franchise: The Options Available For Debt Settlement Affiliates

By Author: Mildred Daniel
Total Articles: 49
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Generally, a debt settlement franchise will offer three types of services to debt settlement affiliates, including FDCPA, the attorney model, and the performance model. The right one depends on the client and circumstance, but it's important to understand the difference in each in order to offer your clients the best advantages. You're helping them heal their lives. In exchange, they're providing you with a sustainable way to make a living.

FDCPA, otherwise known as the Fair Debts Collection Practices Act and Debt Restructuring model, is easily the most popular option among debt settlement affiliates. There's no face to face contact, yet the debt settlement franchise can still earn money up front through the drafts that will naturally happen over the payment of a debt, as well as the back end as a percentage of the savings.

Unlike a traditional debt settlement, the attorney retainer benefits greatly from a FDCPA settlement. Creditors often violate the law (a lot more than you'd think). Any attorney who cites violations earns a certain percentage for their client, at $1,000 per violation. The debt settlement franchise ...
... will then use these violations to get better services for their client. It's a way of protecting the little guys and keeping the creditors legit. It doesn't exactly rob from the rich to give to the poor, but it does keep the system more accountable.

The second option for debt settlement affiliates is the attorney model. Similar to traditional debt settlement, this method allows the debt settlement franchise to charge an enrollment fee of 15 to 17 percent, with the average participation time at about two to five years. In this model, the attorney or staff member must face to face with the client. While that's certainly more personable, it takes time and is usually a lot more complicated than what most debt settlement affiliates are looking for. People start a debt settlement franchise so the work is already done for them. Why make it hard for yourself?

The third option for debt settlement affiliates is the performance model. In this model, no one pays a cent until an agreement is mutually reached. This way a debtor can be assured no money exchanges hands until there has been a legal settlement. It can be a great program that creates considerable leverage, one that's ideal if the debt settlement franchise is pitching against another company.

With the increasing number of options available for debt settlement today, debt settlement affiliates are better empowered than ever before to find the most effective solutions for helping their clients solve their debt problems.

Matthew Gallagher is the author of this article about the different programs available today for debt settlement affiliates operating a debt settlement franchise.