ISSUES IN IDENTIFYING REPUTABLE PROVIDERS

We understand that it is difficult for the average consumer or business to be able to differentiate and evaluate claims made by different organizations. Traditional methods such as ratings from different groups found on the internet often do not tell the full story and tend to highlight unverified information or may reflect a financial relationship and not consider actual performance or specific legal requirements. For example, the Better Business Bureau may not thoroughly and independently verify the accuracy or legal requirements associated with communications from consumers and businesses. The Better Business Bureau similarly collects fees from businesses who it rates. Consequently, it is entirely possible some companies with “F” BBB ratings should have an “A+” rating and other companies with an” A+” rating should have an “F” rating. Other services rating organizations can charge large fees to providers to respond to comments on their sites. Similarly, when consumers or businesses make untrue claims on YELP and other sites, it is often impossible for the business to have the false information removed and restore the damage to their reputation. 

RBI Limited Liability Company takes the guess work out of the process of finding knowledgeable, competent, ethical and competent providers in the debt and structured settlement space. RBI Limited Liability Company facilitates connecting a consumer or business with a reputable, ethical, knowledgeable and competent provider. These connection include providers who may be able to help solve an issue, but also vendors offering consumers an opportunity to generate funds to deal with financial problems in an unconventional manner. The consumer or business pays nothing for the connection and is under no obligation to contract with the connected organization.

Unlike many of the advertisements for debt related services, RBI Limited Liability Company focuses on identifying organizations who are focused on client care and compliance and who do go above and beyond.  We tend to stay away from companies who run massive television, radio, social media, internet or mail campaigns and focus on boutique operations who can concentrate on individual clients and are not part of large entities where a person may be nothing more than a number. The slicker the presentation, the more caution required. The larger the operation, the less important each client will be.  Some of the companies are difficult to locate and tend to rely on referrals.

Because, the founder of RBI Limited Liability Company has been in the debt industry a long time, the founder has seen firsthand the darker side of the industry. Many of the operations are not even compliant with applicable laws.  Some of the operators are even convicted felons who have been barred from engaging in the securities industry. Likewise, many industry organizations do not disclose the full risks or alternatives and may say things that are not true in the course of their sales presentations solely for the purpose of having someone sign up. While we generally suggest working with a law firm is a safer bet, this is not always a guarantee. It is truly “Buyer Beware.” There are and will continue to be companies who are just trying to separate those in financial trouble from their remaining money without the intent to help. With the devastation created by Covid 19, this problem is only going to get worse and regulators and enforcement agencies often times go after the wrong party and protect some of the larger players in the industry. By allowing RBI Limited Company to connect consumers and businesses with a reputable providers,  it will help them to avoid serious mistakes. 

The founder of RBI Limited Liability Company has also seen how many politicians, members of press as well as regulatory and enforcement agencies and the lawyers representing these groups do not fully understand all of the facts and circumstances and sometimes jump to faulty conclusions. Keep in mind the default rate on credit cards is 39.99% and the effective rate on payday loans can be several hundred percent.  Politicians passed the laws that permit these rates and protect those now charging those rates. 

RBI Limited Liability Company wants to give back by connecting consumers and businesses with reputable, knowledgeable, ethical and competent providers who will focus on the client and put a premium on client service.

Presently, RBI Limited Liability Company is connecting consumers and businesses in seven specific areas.  The Company hopes to expand the scope in the future.

CONSUMER DEBT RESOLUTION

The first area where RBI Limited Liability Company will make connections is to consumers who have problems with unsecured debt such as credit cards, medical debts and private student loans. This area, which we label as Consumer Debt Resolution, is commonly referred to as one or more of the following: debt relief services; debt settlement; debt resolution; debt negotiation; debt validation/invalidation; debt negotiation, debt adjustment; or pro-rating. The objective of these programs is to reduce or eliminate unsecured consumer debt relying on one or more different techniques such as resolving debts at less than full balance or making a debt uncollectible based upon provisions in State and Federal laws. Consumer Debt Resolutions generally resolve one debt at a time sequentially and not simultaneously.  

The consumer makes a monthly payment for every month they are in the program.  When the balance is high enough, a third party tries to negotiate a resolution. There is some degree of risk in Consumer Debt Resolution programs. However, even with the risk, many consumers can be successful in total or at least partially successful. Some operators work on a performance basis, while other operators charge fees on some type of periodic basis. While the performance model may seem to appeal to many, in the end the total fees tend to be higher and the operators are not incentivized to work on the difficult or larger debts requiring more funds to resolve.

Consumer Debt Resolution programs can be operated by law firms or by entities that are not law firms. The law firm approach is generally better since some creditors may refuse to deal with anyone who is not a lawyer. Since one of the risks of Consumer Debt Resolution is a creditor filing a lawsuit, a law firm is generally more equipped to provide advice and assistance if that happens.

The risk of any creditor filing a lawsuit exists, but is not astronomically very high. A competent and knowledgeable provider should be able to provide guidance and design a strategy around problem creditors. While there are no guarantees, on average as of the date of resolution, the average settlement should be in the vicinity including costs and fees of 65 to 75 percent of the balance. Some may be less and some may be more and some could refuse to offer any discount. Remember however, that from a creditor’s point of view, most of the time they prefer to collect something than not to collect at all and incur the costs if they cannot collect. Even if a creditor sues, it does not mean that a debt cannot be negotiated to a lesser amount.

CONSUMER CREDIT COUNSELING AND DEBT MANAGEMENT PLANS

A limited alternative to Consumer Debt Resolution are Consumer Credit Counseling/Debt Management Plans. Unless a consumer is risk adverse, has only credit card debt, is not more than 2 months behind on their credit cards and can make very large monthly payments, RBI Limited Liability Company generally does not recommend Consumer Credit Counseling/Debt Management Plans. Consumer Credit Counseling and Debt Management Plans are essentially the same except that Credit Counseling programs are operated by non-profit organizations while Debt Management Plans are run by for profit organizations. 

The cost of Consumer Credit Counseling/Debt Management Plans tend to be between 115 to 130% of the amount of the enrolled debt and the programs generally take longer to complete than debt resolution. In contrast, provided a consumer is willing to take some risk, the costs of  Consumer Debt Resolution plans tend to be between 65 and 75% of the enrolled debt. Consumer Credit Counseling/Debt Management Plans try to resolve debts simultaneously. They apply only to credit card debt and all creditors have to agree to the plan. Every payment is split among all of the creditors at a predetermined rate. The creditors may also share a portion of the fees paid by the consumer with the operator such that the operator may not be a true advocate for the consumer as the operator in Consumer Debt Resolution would be. The failure rate in Consumer Credit Counseling/Debt Management Plans is high and when a consumer fails, they typically end up in a worse situation than before they enrolled. There is no partial success in Consumer Credit Counseling/Debt Management Plans as there is in Consumer Debt Resolution. The only saving grace is if every payment is made on time, the consumer will not be sued.

TRYING TO GET A LOAN

One other way to try to deal with consumer debt, is to try to get some type of loan.  This could include an unsecured loan, a line of credit against real estate or a line of credit. The basic problem is most consumers who are in trouble will not qualify for any loan and if they do, the interest rate could be very high or the amount that can be borrowed will not be enough. If the interest is too high, why bother? Moreover, if a consumer does obtain a loan, the consumer has to be able to service the debt. Just taking out a loan, will not offer any type of reduction. There is usually flexibility with Consumer Debt Resolution, but rarely the same flexibility with a lender on a loan. 

One possibility is to consider taking out a loan and simultaneously enrolling in Consumer Resolution Program. Under such circumstances, there is a reduction and the length of the program should be shorter since there will be funds available to pay off debt and therefore the risk of litigation reduced.

CONSUMER RESIDENTIAL MORTGAGE LOAN MODIFICATION

The second sphere where RBI Limited Liability Company will make connections is for consumers who own residential real estate, meaning they own their own home.  This area is made of two different types of programs. The first involves entering into an agreement with the holder of a residential mortgage to make a distressed consumer’s financial situation more tolerable. This is commonly referred to as mortgage modification. They can be sponsored by law firms and entities who are not law firms. If an entity is not a law firm, they cannot collect a fee until the modification has been completed. This requirement does not apply to law firm sponsors generally. RBI Limited Liability believes it is better to work with a law firm since there are legal issues associated with modification. Performance or contingent programs also tend to be more expensive than programs that collect fees under some other method. There are strict requirements and consumers for loan modification and consumers must have a hardship as well as be able to make continuing payments once modification is completed. The availability of a modification will vary based upon a variety of factors including your particular facts and circumstances and the lender. Sometimes lender will only grant a temporary modification which they may or may not make permanent.

REAL ESTATE APPRECIATION RIGHTS

The second type of program in the second sphere involves a method to raise funds through the sale of a portion of the current value of a home and a share of the potential future appreciation. This second option, which is known as a Home Equity Agreement, can be utilized to obtain funds to resolve consumer debt or for any other purpose. The homeowner must have a minimum FICO score and have a significant amount of equity in the home. Home Equity Agreements are available to owner-occupied and non owner-occupied homes in a number of States, and can be used on qualifying properties including single family residences, townhomes, condominiums, duplexes and single-family homes with up to four units. A Home Equity Agreement will not appear on a credit report and will generally not require the homeowner to make any payments until the house is refinanced or sold. Requirements will differ based upon the location of the property and other facts and circumstances. In some jurisdictions, the laws do not permit these types of programs.

STRUCTURED SETTLEMENT
A. Structured Settlements Future Payment Sales
B. Advisors for Structured Settlement

RBI Limited Liability Company also makes connections to consumers who are eligible to receive future payments from structured settlements. Structured settlement payments usually result when a consumer obtains a large award or settlement in a wrongful death, malpractice, products liability or personal injury litigation payable periodically over an extended period of time.  Structured settlement payments also result when consumers receive payouts on lottery winnings also payable periodically over an extended period.  If a consumer wants to sell all or part of those payments, the consumer has to have a compelling reason and obtain approval from a Court. There is an entire industry of factoring companies trying to buy structured settlement payments at very large discounted prices. The process is heavily regulated under State laws.  There are also many people who have been taken advantage of and entered into  bad transactions.  There are many factors that determine if a transaction is fair.  To properly evaluate if a transaction will be fair, the consumer should retain an Independent Professional Advisor to help analyze any proposed transaction and also help the consumer determine if the consumer is working with a reputable company.

RBI Limited Liability Company refers consumers to ethical factoring companies who may be interested in purchasing future structured settlement payments. Unfortunately, there are too many factoring companies who are simply trying to take advantage and abuse an unsuspecting consumers. Despite what these companies claim, there is much more to it than getting access to future payments currently.  The cost can be high forcing the seller to pay a very steep premium to sell. The seller needs to be working with a company that will look out for the consumer’s welfare as opposed to the company’s bottom line. 

More importantly, RBI Limited Liability Company also refers consumers to Independent Professional Advisors who can evaluate any proposed sale and also assist in getting a proposed transaction approved in Court. The number of  reputable Independent Professional Advisors is very limited so that we believe this is a very valuable service. Despite what anyone may tell you, it is very important for a consumer to receive an independent evaluation. There are many unscrupulous companies seeking to lure consumers into horrible transactions so that they can make money. A knowledgeable Independent Advisor will sort through and analyze the proposal and put your interests above the company seeking to buy the payments.  This Independent Professional Advisor will also make sure you have compelling reasons and assuming you do, will help you through the Court approval required to complete any transaction. Some judges are far more likely to approve a transfer if an Independent Professional Advisor is part of the process. The Independent Professional Advisor will also make sure you fully understand the ramifications of every proposed transaction.  In some states such as California, the buyer of structured settlement payments is responsible for paying most if not all of the costs of the independent Professional Advisor.

Do not confuse an “Independent Professional Advisor” with someone masquerading as a consultant claiming they can increase the amount an annuitant will receive when the transaction is completed. What the consultant does not tell you is that they will charge a steep fee that may negate any illusory gain. The Independent Advisor (whose compensation is limited, regulated, and often depends upon the jurisdiction paid by the factoring company) provides the same service.

FEDERALLY GUARANTEED STUDENT LOANS

We do not connect consumers who have issues with their federally guaranteed student loans to third party vendors. A consumer should be able to deal directly with the matter on their own. There is no need to pay anyone for assistance in obtaining a Direct Education Consolidation Loan from the US Department of Education for a federally guaranteed student loan. The application process is easy and free. Unless a consumer is paying a very small fee and for a limited time in a program, anyone seeking to assist with federally guaranteed student loans is likely engaged in a scam.

Note, there is a distinction between a federally guaranteed student loan and a student loan that is not federally guaranteed. The US Department of Education program only applies to federally guaranteed student loans. Private student loans are treated the same way as any other form of student debt. Private student debts can be handled through most Consumer Debt Resolution programs.

If you have an issue with a Federally guaranteed student loan, we refer you to the following US Department of Education Website: https://studentaid.gov/app/launchConsolidation.action.

TAX RESOLUTION
A. Tax Analysis
B. Complete Resolution

Should you have a problem with the Internal Revenue Service or a state taxing agency, we maintain a relation with a company who should be able to work with you to resolve your Federal or State tax problem. The Internal Revenue Service is a powerful creditor with unlimited resources. Their counterparts in States have the same characteristics. The rules are complex and therefore it is a good idea to work with someone who knows what they are doing. Without assistance, the taxpayer is at an unfair disadvantage.

It is also helpful to confirm the issues and get an understanding of the extent of a tax problem if one exists. RBI Limited Liability Company has a connection to a provider for a nominal fee who can prepare an analysis based upon data put into a tax software program. Based upon the results of the analysis a consumer can determine if they have a problem requiring help or if they do not have issues requiring assistance.

BANKRUPTCY

If you are considering filing for Bankruptcy, we also maintain a network of lawyers who handle Bankruptcy. Bankruptcy is meant to be an option of last resort. While we do have our network and are happy to refer you, depending upon the type of debt issue you have, we would suggest you consider trying one of the other services that could be at the heart of your problems before proceeding into bankruptcy. You can always file for bankruptcy if you do not succeed in another type of program.

BUSINESS DEBT RESOLUTION
A.  Elimination of Merchant Cash Advances
B.  Business Reorganization without Bankruptcy

The services discussed above are restricted to consumers. Should you have a business debt problem, it must be handled in an entirely different fashion. The rules for consumers are much different from the rules for businesses. Consumers depending upon the State, have more rights and protections than businesses do. A business debt is defined as any debt where a personal social security number is not used and/or the debtor is not an individual.

There are two specific programs available for businesses. The first program is for businesses who are looking to reverse and stop a merchant cash advance. Merchant cash advances are costly. We can refer you to an organization who will work with you to reverse any such contracts you may have. The second type of service is a business reorganization. It is an alternative to bankruptcy that is less costly and allows you to remain in charge of your company, rather than having bankruptcy trustees seize control.