Starting a Debt Consolidation Business Best answer on the web

  • I am interested in starting a debt consolidation business in California. I am looking for research and resources around the debt consolidation industry. I am currently a small business owner, so I understand setting up a small business from a state and federal law and tax stand point. I do not need help with forming a business entity. I am also not speaking of debt consolidation via home refinancing. I am speaking strictly of debt consolidation loans secured via income or assets outside of refinancing residential real estate.
    My questions are specific to the debt consolidation industry and any regulations.

    How does one provide debt consolidation services to customers?

    Are there typical business structures and processes for:

    1. reviewing a person's debt and creditors and qualifying the person for a consolidation loan based on income/assets
    2. finding an institution that will loan an amount equal to the outstanding debt in one loan at a particular interest rate
    3. negotiating or completing payoffs to the existing creditors

    Does a debt consolidation company work as a broker for institutional lenders that will lend out personal loans for debt consolidation (similar to a mortgage broker, who qualifies individuals and then places them with a bank/loan program for a fee?)
    If so - who are the top institutional lenders who specialize in debt consolidation loans; and who have business to business account executives who work with smaller debt consolidation firms/brokers to collect debt loans/customers?
    Do any licensing requirements exist for the state of California in terms of corporate licensing or structure to legally handle debt consolidation business?
    Are there any resources (links, books, articles, etc.) that are available to help potential start ups in the debt consolidation industry?
    Thank you in advance for your research on this matter!


  • It is often suggested that multi-part questions be posted as separate, appropriately priced individual questions. This will allow several Researchers to have a chance at answering your questions and give you a greater likelihood of receiving some answers. You might read the FAQs. In the meantime, you might look at some of the very many websites that can be found with: debt consolidation such as this one:
    http://www.creditinfocenter.com/

    The fact that this has become such a big industry and is so present on internet suggests that people prefer to avoid face-to-face discussion of their problem - and also that there is a lot of competition.
    This is just a free comment. Only G-A Researchers, who have blue names, can post an "answer" that would cost you the price of your question.









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    Posted inhznj.com July 30th, 2010 edit