Before you start
US consumer debt settlement. The specific FTC protections below apply to debt-relief services covered by the Telemarketing Sales Rule; coverage, exemptions and state requirements need separate checking.
1. Identify all parties and both contracts
Write down the settlement provider, account administrator and financial institution as separate roles. Ask whether the institution is insured and how ownership is recorded. Obtain account statements directly through a verified channel. A provider dashboard can summarize deposits without showing every account charge or creditor receipt. Ask when the company expects to make an offer on each debt, what savings it assumes and which debts may remain unresolved.
2. Check the applicable fee and account protections
The FTC rule covers many for-profit services for unsecured debt sold through interstate telephone calls, including covered calls responding to advertising. Do not assume every provider or transaction is covered. For covered services, a dedicated account must be at an insured institution; the consumer owns funds and interest and can withdraw. The administrator must be independent of the provider, without affiliation or fee splitting. A reasonable administration fee is distinct from a debt-relief fee.
3. Separate savings, settlement and earned service fees
For covered services, the debt-relief fee requires a successfully changed debt, a written creditor agreement accepted by the consumer and at least one payment under it. Merely accumulating savings meets none of those conditions. Inspect each transfer’s recipient, reason and supporting agreement. Creditors need not settle, and stopping payments can bring interest, collection or lawsuits. A funded account does not protect you from those consequences.
4. Check how withdrawal actually works
Under the covered rule, you can end the provider relationship without penalty; account money must be returned within seven business days, minus fees earned in compliance with the rule. Ask how to submit a request, receive confirmation and reconcile the final amount. Record actual dates without using this page to calculate a legal deadline. Keep account charges, earned provider fees and creditor payments separate. Leaving the program does not erase unresolved debts or undo completed settlements.
Fictional example: check the documents
In a fictional account, four $300 deposits total $1,200. Statements show four $10 administration charges and no creditor payments: $1,200 − $40 = $1,160 held. No settlement or debt-relief fee has been earned in the example.
The reader requests ownership and withdrawal confirmation for the $1,160 and checks whether any other documented transaction exists. The $40 is an observed charge, not a conclusion that its amount is reasonable or lawful. The $1,200 deposited is not $1,200 of debt reduction.
Before you finish
- Account agreement and provider contract
- Institution, administrator and ownership evidence
- All charges and authorization rules
- Creditor agreements and actual receipts
- Withdrawal instructions and final reconciliation
My preparation notes
All notes are optional. Use labels such as Debt A and Document B. Keep identifying records, account numbers and tax IDs outside this page.
Entries are optional and stay in this page's memory. This worksheet does not send or save them. Use generic account labels and document labels. Do not enter account numbers, Social Security numbers, PINs, access codes, passwords, names or addresses, and do not upload documents. Downloading or printing creates a copy you control.
Keep the account’s money trail beside the settlement contract before authorizing further transfers.
Put up to four documents or actions in order
Record a short fact, such as requested a quote, sent a question, or received written terms. Dates and document labels are optional. Use generic labels; keep actual documents and identifying details outside this tool.
This is a factual log. Dated events sort from oldest to newest. Events on the same date keep their entry order because times are unknown. Undated events appear separately, in entry order. A document reference is your own label, not proof that a record was verified.
Enter actual dates as YYYY-MM-DD. If a date is unknown, leave it blank; do not invent one. Dates are calendar dates, with no time zone or time-of-day comparison. This record does not calculate a legal deadline or schedule reminders.
Questions you may have
Does depositing money stop creditor collection?
No. Saving is different from an accepted settlement and completed creditor payment. Respond to court papers through the applicable legal process.
Can the provider call savings a service fee?
A label does not satisfy the covered rule’s fee conditions. Ask for the actual legal and contractual basis and supporting creditor-payment evidence.