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Talk to a Licensed Counselor 888-960-5303

17520 West 12 Mile Road Suite 105 Southfield, Michigan 48076

Toll Free: 888-960-5303

Fax: 248-200-2108 9am-5pm EST

National Debt Management is not a loan company, we do not lend money.

Accredited 501(c)(3) Non-Profit Credit Counseling Agency

Michigan – License Number: 0014319

NOTICE TO CONSUMERS

Pursuant to Michigan Administrative Code R 451.1235, and the Debt Management Act provisions of Sections 13(1), 13(2), 14(1), and 18, require the following information to be provided:

Statutory Provisions:

Section 13(1): A licensee may charge an initial fee not exceeding $50 when establishing a debt management plan.
Section 13(2): Within 90 days of setting up a debt management plan, the licensee must attempt to obtain consent from at least 51% of the debtor’s creditors, either by number or total dollar amount. If this consent isn’t obtained, the licensee must notify the debtor in writing.
Section 14(1): Every contract between a licensee and a debtor must include:
- A list of each creditor to be paid and the amount owed.
- The total charges by the licensee.
- Start and end dates of the contract.
- Principal amounts and estimated interest charges of debts.
- Names and addresses of both the licensee and debtor.
- Any additional disclosures deemed necessary by the director for debtor protection and proper business conduct.
Section 18: This section governs additional fees and cancellation policies:
- Service Fees: Licensees may charge a reasonable fee for debt management services, not exceeding 15% of the total debt to be liquidated during the plan’s term.
- Optional Purchases: Debtors may choose to purchase credit reports or educational materials, with fees for these items not subject to the 15% cap.
- Cancellation Fee: If a debtor cancels or defaults before completing the plan, the licensee may charge a $25 fee, in addition to any previously collected fees. This fee is not subject to the 15% limit.
- Right to Cancel: Debtors can cancel the contract within three business days of its effective date without incurring the $25 cancellation fee.
- Contract Effectiveness: A contract becomes effective when both parties have signed it and the debtor has made a payment.
- Overcharging Penalty: Charging more than authorized (except for clerical errors) requires the licensee to refund all collected payments not distributed to creditors and pay an additional penalty equal to the overcharged amount.

Contact Information:

For questions or complaints, please contact:

Michigan Department of Insurance and Financial Services (DIFS)
P.O. Box 30220
Lansing, MI 48909-7720
Phone: 877-999-6442
Website: www.michigan.gov/difs

* Under our debt resolution program, estimates are based on prior results, which will vary depending on your individual program terms and your specific enrolled creditors. We cannot guarantee that we will be able to resolve all of your enrolled accounts or that we will be able to resolve them for a specific amount or within a specific period of time. Not all of our clients will be able to complete our program for any number of reasons, including, but not limited to, their ability to save enough money during the term of their program. Under our program, we do not assume the liability for your enrolled accounts, and unlike our debt management programs, should you choose to enroll in a settlement programs, we do not make monthly payments to your creditors. Failing to make timely payments to your creditors on your enrolled accounts will likely adversely affect your creditworthiness, increase the outstanding balances due to the accrual of interest charges, penalties and late fees, and may subject you to collection actions or lawsuits by your creditors. However, the repayment agreements that we may negotiate on your behalf will resolve the entire outstanding balance on that account, including any interest, penalties or fees accrued during your program participation. Any amount of debt forgiven by your creditors may be subject to income tax, and you should consult with an accountant or attorney regarding the potential tax consequences of paying less than the full amount owed on your enrolled accounts. We do not provide tax, accounting, legal or bankruptcy advice. We are not a credit repair company, and we do not provide credit repair services. You should carefully read all program materials prior to your enrollment to be sure you fully understand the terms and conditions of our program. Our program is not available in all states, and our fees vary by state.

** Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt settlement companies. If we know that to be the case, we generally won’t enroll the account into your program.

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