TSR’s – Mandatory Disclosures

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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:

  • Settlement Fee: 23.5% (based on enrolled debt)
  • Global Fee: $15.95 Monthly (Includes All Escrow Charges)
  • Optional Legal Plan: $275 enrollment + $55/month (included in your regular program draft).
    • Cancel anytime. Many clients keep it early on for added protection.
    • FluxMatch: Complete the program and keep the plan for 12+ months to earn a cash-back award.


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.

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