TSR’s – Mandatory Disclosures

When communicating with clients, ensure the following points are covered:

Credit Impact: Inform clients their credit score may decline due to delinquent payments.

Collection Calls: Advise clients that creditors have the legal right to contact them about unpaid debts.

Fees & Interest: Explain that additional fees and interest may accrue on accounts, potentially increasing the balance.

Fee Breakdown: Share details of program fees:

• 25% Settlement Fee (based on enrolled debt)
• $12.95 Forth Escrow Account Monthly Fee.
• $6.00 Forth Creditor Payment

Tax Implications: Notify clients they may receive a 1099-C for forgiven debt, with potential tax responsibilities.

Lawsuits: Clarify that creditors may pursue collection through lawsuits, garnishments, or liens.

Settlement Time Frame: Outline the estimated time needed to settle debts and complete the program.

Alternative Debt Relief Options: Inform clients about other options, such as bankruptcy.