Why underwriters look closely at debt consolidation
Advance-fee rules
Under the FTC’s Telemarketing Sales Rule, debt relief services sold by phone can’t collect fees until a debt is actually settled or resolved.
State licensing
Many states license debt management and debt settlement companies.
Large monthly payments
Program payments are big and recurring, so failed payments and disputes add up quickly.
A payment setup that fits
How we usually set up debt consolidation companies. Your consultant tailors it to how you actually sell.
- 1
ACH first
Most programs collect by bank debit, with card as a backup, and watch returns closely.
- 2
Client funds kept apart
Money set aside for creditors held separately from your earned fees.
- 3
Authorization for every plan
Signed authorization covering amounts and dates, with notice before any change.
What you’ll need to apply
Have these ready and your application moves faster. Your consultant confirms the exact list for the processor you’re matched with.
- Government ID for every owner with 25% or more
- Voided business check or bank letter
- Recent business bank statements
- Recent processing statements, if you have taken cards before
- Articles of incorporation and EIN letter
- A website with clear pricing, refund, cancellation and contact details
- State licenses for debt management or settlement
- Client agreement and fee schedule
- Payment authorization forms
- Details of your account administrator, if you use one
Why applications get declined, and how to avoid it
- Fees collected before any debt is resolved
- No license in states where clients live
- Guarantees of specific savings
We review your website, policies and statements against these before anything is submitted.
Keeping the account healthy after approval
Getting approved is half the job. These habits keep your account in good standing, and our platform tracks the numbers behind them for you.
- Tie every fee to a settled or resolved debt
- Confirm each payment date in writing
- Review ACH returns every week
Debt consolidation: common questions
Is a consolidation loan treated the same as debt settlement?
No. Lending, credit counseling and debt settlement are reviewed differently. Tell us exactly what you offer and we’ll match the right acquirer.
When can we charge our fee?
For debt relief sold by phone, after a debt is settled or resolved and the client has made a payment toward it. Have counsel confirm your model.
Can clients pay by card?
Many programs use ACH for monthly deposits and accept cards for fees. We’ll set up both if your model allows it.
What happens after I’m approved?
We keep working with you. Our platform gives you one view of every account, and we review your chargebacks, approval rate, fraud tools and fees with you so the account stays healthy and gets cheaper over time.