DebtMagicians (DM) itself was designed specifically for businesses whose primary customers are consumers (as opposed to other businesses) with delinquent customer accounts that have not yet been sent for 3rd party “collection”. In 2018, More than one-in-four consumers (28 percent) with a credit report, had at least one third-party collection notation in their file.
According to a report from the New York Fed, in the fourth quarter of 2019, 4.7% of outstanding debt was in some stage of delinquency with $444 billion in delinquent debt (out of the total $669 billion in delinquent debt) classified as “seriously delinquent,” which included debts that were previously charged off but on which lenders continue to attempt to collect.
With DM, there are NO collection costs to the Creditor. The Debtor pays 100% of our fees. NO settlement, NO fee.
DM uses our sophisticated and proprietary Debtor-facing online debt settlement engine. With DM, a Debtor can make a proposal to their Creditor to settle their debt by offering to pay a lesser amount than their outstanding balance.
Negotiated settlements are based solely on numerous debt settlement criteria set by the Creditor. Debtors are invited to make a settlement proposal after receiving a personalized email invitation generated by DM using a Creditor’s delinquent accounts Excel file as input.
DM offers the Debtor multiple payment options to enable them to be able to afford a payment method that will satisfy their Creditor and their budget. Settlement payments can be made by either a single payment or on an installment plan and use either an eCheck or a credit/debit card.
Additional features of DM are the opportunity to ‘Crowdfund’ a debt settlement by appealing to friends and family for assistance and enabling DM to evaluate a settlement proposal to ensure that the proposal doesn’t overextend their resources or budget.
If DM accepts their offer, this could be the perfect
non-confrontational way to transform a delinquent Debtor into a settled account. Think “Priceline® meets debt collection” - the Debtor makes you an offer for you to ‘Accept or Reject’®.