Sounds great but is the right move?

There is a new sales method in the Credit Restoration industry. They call it the Pay –Per-Deletion model and pride themselves on a client not paying until items are removed from their credit reports. This sounds amazing…until you get to know why.

We have had the opportunity to sit in on many webinars as well as talk with many companies across the nation offering this “Risk Free” model. Here are the issues presented with this new model being the sole source of payments from clients:

1. More money is being charged for overall repair
2. There is no maximum cap on the amount that could be paid (a violation of the Credit Repair Organizations Act)
3. There is no monthly cap on the amount being charged We have seen some bills as high as $1,500 for 40 days worth of work
4. There is no way for a client to budget the monthly payments
5. There are A LOT of misleading fee’s and extra charges for the client

Here is an example of industry wide standards that uses this current model:

FEES FOR RESTORATION:
Late Pays $27
Collections less than $5,000 $32
Collections greater than $5,000 $45
Collections less than 12 months old $45
Public Records $60
Inquiries, Names, Addresses, Social Security, $12
Bankruptcy or Foreclosure $125
Certified Mail $4.75
These fees will be charged per Credit Bureaus (Experian, Equifax or CSC and TransUnion).

(Numbers are averages of nationwide companies prices – these are not actual prices)

This looks great and is usually accompanied by catching slogans like – “You don’t pay if it don’t go away” that make you feel warm and fuzzy, but let’s look at the real numbers. In the example of fees listed are not the cost for 1 total item – they are the cost for EACH CREDIT BUREAU which means a client may be charged 3 times for the same item. This could make 1 collection worth up to $255. Another example would be 1 charge off reporting multiple late payments could cost $30 per late payment!!! This could potentially be over a $1,000 bill owed just for the correction of 1 item!

The Credit Guys Way
Credit Guys offers 4 different payment plans for our clients – yes one of them is the pay-per-deletion model (but with caps). We have several options for a client to choose from to find the right fit for their needs. Every client is different and by having 4 different options we are able to tailor fit their credit restoration and not just cram them into one cookie cutter program. We have found that even offering the Pay-Per-Deletion program that 95% of our clients prefer the comfort and stability of knowing what their payments will be.

Our number 1 goal is to get as many clients credit repaired and back to buying status as soon as possible. The happier our clients and partners are, the more referrals we will get from them! So make sure you are working with the right team who has proven results, and can help you accomplish your financial dreams!