Just last week we posted a blog titled “How Debt Settlement Companies are Paid.” We pointed out that the majority of debt relief companies charge a percentage of your entire debt BEFORE they even start doing any work for you. Well, the California Legislature must read our blogs. Today, they announced they were looking to pass Assembly Bill (AB 350).

This inclused an interesting new twist in this regulation from California is the sentence “The provider’s total fees must be spread over at least half the length of the program or until offers of settlement by creditors are obtained on at least half of the debts enrolled to the provider.” This would leave debt settlement companies unable to earn any fee, except a setup fee, for probably several years into a debt settlement program. But based on the success rate of debt settlement programs this actually probably serves to eliminate debt settlement companies from collecting any fee since most clients will fail before they are able to collect a fee.
Some of the Language from the Bill includes:
A provider that is required to be licensed under this division shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a customer service representative, as appropriate, during ordinary business hours.
(a) Before an individual assents to an agreement to engage in a program, the provider shall do all of the following:
(1) Prepare and provide a written financial analysis specific to the individual.
(2) Provide a written good faith estimate of the length of time it will take to complete the program and a statement of the total amount of debt owed to each creditor included in the program. The estimate shall include a statement of the monthly savings goals for the individual to complete the program.
(3) Based upon the completed financial analysis, make a determination that the individual is qualified for a debt relief program and that the individual can reasonably meet the requirements of the program.

No offense but your really wasting our time to read this crap. This is the same thing you posted in all 8 of your other posts. I call it creative BS as an excuse to make some backlinks for your business. Not only have you wasted my time and others you devalue the meaning and quality of this site. If you dont have anything other to do than post the same pre-written memos Im sure you posted at 100 other forums, then please go somewhere else and ruin their sites. Im sure the moderator here doesnt want to have to spend his time dealing with your spams.

It's okay, he's gone.