How We Negotiate

Stage 1: Intake and qualification (week 1)

Every prospective client starts with a 30-60 minute consultation with a dedicated specialist — never a call-center rep. We review your debts, income, expenses, and hardship circumstances (job loss, medical, divorce, reduced income, etc.). We pull a soft credit report with your consent to confirm what's enrolled and verify the original balance.

We turn down people we don't think we can help. That includes people under our $7,000 minimum, people with debt we can't legally settle (federal student loans, tax debt, secured debt), and people whose budget won't support the monthly deposits. Our fee depends on settlements closing, so enrolling clients who can't finish the program doesn't help either of us.

Stage 2: Enrollment and escrow setup (week 2-3)

If you decide to move forward, you sign a written Customer Service Agreement that matches every FTC TSR disclosure requirement. You receive the Pre-Enrollment Disclosure document separately, as required by federal rule. You have three business days to cancel without penalty.

We help you open a dedicated escrow account at Reliant Account Management. The account is in your name, at a federally regulated custodian — not in TRG's accounts. Neither we nor any creditor can withdraw funds without your explicit authorization per transaction.

You stop paying enrolled creditors and redirect those payments into the escrow. The specific amount is set based on what your budget supports, with a target of resolving all accounts in 24-48 months.

Stage 3: Creditor communication (month 1 onward)

Once you enroll, you sign a limited power of attorney that lets us handle creditor calls on your behalf. We're not hiding you — we're responding promptly and on the record. Our standard message to creditors: "Our client has enrolled in a debt settlement program. They intend to resolve this account. We'll be in touch when we're ready to present an offer."

Creditors may still contact you directly. We coach you on what to say (short version: refer them back to us, don't acknowledge the debt in ways that restart the statute of limitations, don't make any partial payments that could reset the clock).

In attorney-model states, once you enroll, the home-state attorney at Consumer Defense Partners becomes a second line of representation. Creditors who want to sue have to deal with a licensed attorney, not an unrepresented consumer.

Stage 4: Settlement negotiation (month 4-36)

Negotiation timing is a function of two variables: how much escrow you've accumulated, and where each creditor sits in their internal delinquency cycle. Most creditors are meaningfully more willing to settle around month 6 of delinquency — before the debt gets charged off and sold to a junk-debt buyer at 10-20 cents on the dollar.

We sequence offers so your first settlement typically lands in month 4-8. Our opening offer on most accounts is 20-30% of the balance. Creditors typically counter at 40-60%. We agree somewhere in between — usually 35-50%, higher for accounts already with collection agencies (which themselves bought the debt cheap and have margin to settle lower).

You receive every settlement offer in writing via email and your client portal. You approve or reject before anything moves. If you reject, we go back to the creditor with your concerns. Once you approve, funds move from your escrow to the creditor within a few business days. You get documentation confirming the account is resolved.

Stage 5: Program completion (month 24-48)

When your last enrolled account is settled, the program is over. If your escrow has a remaining balance, it's returned to your bank account. You receive a completion letter documenting every account resolved, with original balance, settled amount, amount saved, and our fee per account.

In January following the year each settlement closed, you receive Form 1099-C from the creditor (we can't issue it — it's required of the creditor by the IRS). Many clients qualify for the insolvency exception on IRS Form 982; we refer you to a CPA if needed.

What we won't do

• Charge upfront fees. We charge 25% of the amount we save you, billed per settlement, never before.
• Settle any account without your written consent. Every offer is yours to accept or reject.
• Promise specific savings percentages. Averages exist; your individual results depend on your creditors.
• Hide the trade-offs. Debt settlement hurts credit temporarily and has tax implications; we disclose both before you sign.
• Use AI chatbots for customer-facing conversations. Every specialist, every negotiator, every call — a human.