A proposed lower installment
A client has several overdue consumer debts and irregular income. An intermediary offers a lower monthly installment but refuses to identify which creditors have agreed, how long payments will continue or whether any principal is reduced. The intermediary asks for a substantial upfront fee and guarantees that every debt will disappear after the first payment. The client also has necessary living costs and a small secured obligation that is absent from the proposal. A legitimate counselor has not yet obtained the full debt statements or assessed a court or CCRS pathway. The task is to identify the missing information and the limits of the promise, not to determine a live client’s legal eligibility.
1. What should be clarified before acceptance?
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Obtain the creditor and debt records, included claims, revised schedule, interest and fees, security consequences and actual repayment capacity. Identify the legitimate authority or agreement supporting the proposal.
2. How should the guarantee be treated?
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Do not rely on an unsupported promise of universal debt erasure. Explain the relevant official pathways and verify the intermediary and any professional or program authority before the client proceeds.