As someone recently paid 50% of the fee backend provider, I opened a debt settlement company and asked me if I was working with a backend provider. My answer is, I have more questions than your answer. One question I asked was whether I had one or more licenses that allowed him to collect fees from consumers already for debt clearing services.
Some states do not have a Debt Assignment ("DS") license, but there are new licensing requirements in many states. If you do not collect fees from consumers, you may not need a license. As such, many of us cooperate with backend providers that handle not only debt negotiations but also collection of fees. The backend provider needs to have the necessary license or attorney network in every state that is running.
Looking closer to the DS license, many of the industry is talking about Green State and Redstate. When talking about Green State, people are referring to states that are non-defense countries. Red State is the state of a lawyer whose backend provider is a lawyer of a regular law firm. In these Red states, there are stringent licensing requirements for engaging DS services in these states. In addition, these red states usually limit the amount and type of fees that can be collected from the state consumer.
If you are using a solid backend debt settlement provider, you want to know which state is Red State and which State is Green State because the client is working with a Red State Attorney , A lawyer in the green state. This will help strengthen the sales process knowing when an attorney can tell the client that they will oversee DS program and debt negotiations. In short, Akasyu is not as bad as the Green State, but this is the area necessary to advance toward establishing the DS service. Please read DS's guide to broaden your knowledge about this business ...
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