I came across this provision in a so-called debt settlement company’s marketing pitch. I won’t say who it is but I’ll explain to you point by point why it’s completely false and misleading, and absolutely irrelevant to reputable law firms like this one:

“The debt settlement companies that are calling you and portraying themselves as Corporate Debt experts are in fact just consumer credit card debt settlement company hold overs from the past that thought they could move into this business and nothing more than that – unqualified and damaging to you and your business.”

FALSE.

The debt settlement companies that work with this firm are reputable, have built fantastic relationships with debt collectors and

“they only offer a Legal “service” like Frontline Legal Services or Legal Shield which are just legal “Insurance” plans that are useless once you’ve had a lawsuit initiated against you, which you have.”

FALSE

The clients that are referred to this firm receive the full range of necessary legal services on each and every case. There are no additional fees.  We have no relationship with Legal Shield. It’s pure nonsense.

“In addition, they front load AAALLL of their fees (25%-30% of your debt) which means for the first 4-8 months they do nothing to address you being sued so while you’re paying them, your situation goes from very bad to even worse and you have next to nothing saved to settle the debt In addition to potential legal action from other creditors while they are stalling you.”

FALSE

We start providing you with actual guidance from the very first conversation on everything relevant to your case: the litigation process,

“Time is not on your side – we get to work as soon as you’re enrolled.”

FALSE

If a so-called debt settlement company is seeking funds in an escrow account (or “trust” account) then they’re not going to settle your case until they receive all of the fees they are entitled to (supposedly) under their contract. I’ve seen it happen time and time again. Client hires a debt settlement company, pays tens of thousands, miss a payment and the debt settlement company runs off with the money that is supposedly in an escrow account. It’s deeply concerning.

If any debt settlement company asks you to put money in an escrow account (or trust account which is the same thing), it’s bad advice. Run, don’t walk, run.