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.
Aspire Fees & Revise Disclosures:
- Aspire: 27.5%
- Aspire CDP: 29%
- Legal Plan: $550; $137.50 for 4 months, then $59.99 per month
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.
MANDATORY DISCLOSURES
• CREDIT – A client must be informed that their credit will be affected negatively due to creditor.
payments being in delinquent status.
• COLLECTION CALLS – A client must be informed that collectors have the right to contact them to collect.
the debt as it is in a delinquent status. Consumers are protected by the FDCPA, and collectors must.
abide by these regulations.
• FEE BREAKDOWN – A client must be informed of ALL fees that are being collected for the service.
provided. They must be broken down by VLP Enrollment Fee, VLP Monthly fee, FORTH Fee, Settlement
Fee (to be collected upon individual settlements) – as well as explain how and when they are collected.
• TAX IMPLICATIONS – A client must be informed that a creditor has the right to send a 1099-C for the
forgiven debt amount. The client may be responsible for the taxes attributed to this amount.
A client must be informed that the negotiators are NOT tax professionals and all questions related to
tax issues (1099C forms) are to be addressed with their tax advisor.
• LAWSUITS – A client must be informed that a creditor has the right to collect on the debt by any means.
necessary including lawsuits, garnishments, liens, etc.
• A client must be informed that the negotiators are NOT attorneys and will not represent them in court.
if a creditor sues them.
• You must inform them of the reasonable time frame for the negotiators to reach a settlement with
their creditors.
• You must inform them of the amount of time necessary to achieve the results to complete the program.
• You must inform them of the amount money, or % of each individual debt, which must accumulate.
before a settlement can be offered to the creditors by the negotiators.
• You must inform them of the other debt relief options available.
IMPORTANT REMINDERS
YOU MUST NEVER ADVISE A CONSUMER TO STOP PAYING THEIR CREDITORS
WHAT YOU CAN SAY: “OUR CUSTOMERS HAVE CHOSEN ON THEIR OWN TO STOP MAKING PAYMENTS
TO THEIR CREDITORS WHICH ALLOWS THE ACCOUNTS TO FALL DELINQUENT AND SETTLEMENTS TO
BE OBTAINED BY THE NEGOTIATORS”
YOU MUST NEVER ADVISE THEM TO IGNORE CREDITOR CALLS
WHAT YOU CAN SAY: “OUR CUSTOMERS HAVE CHOSEN TO HANDLE THE CALLS A FEW DIFFERENT
WAYS. MOST CLIENTS REFER THE CREDITOR DIRECTLY TO CDR/CLG. SOME CLIENTS CHANGE THEIR
PHONE NUMBER AND OTHERS SIMPLY IGNORE THE CALLS. WHAT YOU CHOSE TO DO IT UP TO YOU.”
Transfer Call to: 949.332.2915
or provide the number for client to CB or they can schedule an appointment here: Schedule your Appointment