Johny Fernandez: So why should one be wary of debt settlement?
Sean Murray: Why should one be wary of debt settlement? So that's a good
question. If you're the, if you're the merchant, if you're the borrower, you
should be wary of debt settlement, because, you can't be 100% positive with
a debt settlement company is going to be able to perform exactly what it is that
you want. If you're, if you're hopeful that the debt settlement company is
gonna, you know, settle your debts for 10 cents on the dollar, or whatever,
there's a good chance that they're not going to be able to right? They're
typically not not lawyers. So they're just an independent negotiator. Lenders
hate them, lenders hate them. So if you're, if you're, if you hire a debt
settlement, Counselor Advisor or something, and they're telling you, hey,
you're gonna go save all this money, I'm gonna go and negotiate on their behalf.
Guess what the lender hates that person, the lender doesn't need to talk to that
person, they can just ignore that person, that person is not a party to
the contract, that relationship on your loan, or whatever type of product it is,
it's between the customer and the funding company, for the debt settlement
company tries to come in and say make, you know, say all these things, they can
just be ignored. Forget the debt settlement guy, right. So that's why a
borrower or merchants should be aware, wary of debt settlement. If you're a
bureau broker, you should be wary of debt settlement. Because you might be
thinking to yourself, hey, I have a customer who I was trying to broker a
loan to, they don't qualify for one, they're in a bad situation, but I still
want to make money off them. So here's what I'm gonna do, I'm going to take
them and bring them to a debt settlement company, and try to get their debt
settled for less, and I'm going to make a commission on that referral. And then
if they settle their debts, I'm going to go and bring it to a lender, and then
get them a loan, right? All sorts of bad things can happen there. One, you could
be helping that merchant, that borrower breached their loan contract, you could
be participating in some type of thing that's adversarial to the lender, the
lender is not going to like you as the broker if you participated in that debt
being settled for less or attempted to be settled for less. And if you as a
broker want to work with a lender or any lender, and you're also at the same time
going out there and hurting lenders, by referring clients to debt settlement
companies to pay the lenders less well, those lenders aren't going to want to
work with you anymore. So if you are a broker, you typically can't be bold, you
can be a broker of loans, but to also be a broker of debt settlement is a real
slippery slope that I mean, I don't think anyone should really try it.
Johny Fernandez: Sounds like it can get very messy.
Sean Murray: Very, very messy. Yeah. And it's happened there. There have been
there have been lawsuits and things that have gone down. It's just it's a it's a
it's a dangerous game. Anyone out there thinking I can make a couple extra bucks
and decimated the broker. Now helping someone out all you're doing is shooting
yourself in the foot.