Debt Restructuring – Just Another Consumer Rip-Off

In July 30, 2011

Steve Rhode over at has published an excellent article exposing a new “debt relief” variation that will only spell trouble for consumers who are duped into enrolling. It’s called “debt restructuring,” and Mr. Rhode provides a very detailed discussion on the marketing approach being used to promote this program, including the totally absurd sales scripts used by boiler-room sales agents to sell this toxic sludge of a “service.” By calling it “debt restructuring” instead of “debt settlement,” the people who have set Read More …


  1. You are actually way off and incorrect in the advice you are giving. Debt settlement programs are intended for people who have no other choice. Larger debt settlement companies have relationships built in with most creditors. It is a case by case scenario and is not for everyone but neither is bankruptcy or divorce. To say that debt settlement is a scam or rip off only shows your lack of actual knowledge of financial affairs in default servicing.

    • Jeff, thanks for your comment, but it sounds like you didn’t even bother to actually read the post you are criticizing. The article above is more than three years old and wasn’t even about legitimate debt settlement programs. I was warning consumers about a scam called “debt restructuring,” which was nothing more than an attempt to get around the October 2010 TSR changes.

      As to your remark that “larger debt settlement companies have relationships built in with most creditors,” that is bullshit and you know it. Or maybe you are just a newbie sales rep who believes the nonsense management is feeding you? I’ve been doing settlement since 1997 and have seen tens of thousands of settlements in my day, and personally coached thousands of people to settle on their own. When did you start, last week? :-) Let’s see the published track record of your company and then we can have a discussion based on facts rather than sales hype, ok?

  2. I am so glad that I read your articles Charles and Steve I want to thank both of you so much! Fisrt of all if anyone is thinking about getting involved in this program RUN don’t walk from this Scam. I am ashamed to say that I did get involved. But because of these articles I got out today and I called all my creditors and to my amazed they have worked very well with me. I started making payments to this program September 2,2011. To make a long story short everything that is in this articles are true. I am glad that I woke up. I got lawsuits from collection agencys, charge off accounts, and cival suits. I got out of this SHIT! I had a Citi Bank card and they took it into the program, I had a Bank One card and they took that into the program. I made calls everyday about my lawsuit and all they would tell me it was a hearing and the judge would get a arbitrator because my creditors say they did not recieve there offers. This way they can’t say that they have not received them. When I talked with Citi Bank and explained the situation, they don’t work with them nor do they negotiate with them. But I had 3 creditors in that sick plan, and I am paying them the same thing I was putting into the plan without fees. They have cancelled the lawsuits against me and I made my first payment today (April 27 2012). I will be able to negotiate with them in the future, but I needed to make some payments. BOA cut my owed amount by $1500. and I will pay $183. with no interest for 18 months. Which I plan to pay off in December. I will be able to pay 2 off in December and My big one in April without worrying about lawsuits. All of that is squashed! That program is to stressful for anybody. I got scamed into because all I wanted to do is get a loan and pay off my bills and I was told I had to much credit card debt for a loan. I had never missed a payment on my credit cards, all I wanted to do was get them paid faster with one monthly payment, and I went through some junk, you would not believe. I can’t put it all in ths post, but spread the word and people out there don’t let this happen to you.

    • Clenteria, thanks for posting your comment here. Sorry to hear you went through this, but congratulations on freeing yourself from this scam and taking the initiative to contact your creditors yourself and work things out.

  3. It’s great to see that there are people out there with a real concern for the economic future of the consumers who are the real driving force behind the economy

  4. I am glad to see there are still honest people left in the industry. I also have become aware of the new “debt restructure programs” I do not think I would be sleeping well if I ever thought this is the new “compliant’ best option, another fly by night company. Coaching and paying no FEES until you save has been the model for many years before all these companies popped out, coaching is definitely the smarter choice for my clients I care about!
    Thank you!

  5. Thanks so much for getting the word out on this and helping to warn consumers. Hopefully we can stop this before is spreads and good people get harmed with this stuff.

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