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Congratulations on being approved for the program! The last step of the process is to cover some important terms of your program, so it’s going to sound like I’m reading. This is to ensure that you have a full understanding of all program expectations and to set you up for success! Thank you for your patience. Now, here’s a breakdown of your approved program.

• Your total estimated debt amount being enrolled is ($XX,XXX).
• We are projecting to negotiate that balance down to an estimated ($XX,XXX).
• Your monthly minimum program payment is ($XXX).
• Which saves you ($XXX) per month.
• Based on you making your payments on time this will get you out of debt in an estimated XX months.
ClearOne is paid on a per settlement basis and their flat fee of (XX%) is built into to your monthly program payment. The fee is only payable if ClearOne successfully negotiates a settlement. Once you’ve approved the settlement and the first payment has been sent to your creditor, that is when they’ve earned the fee. There are no prepayment penalties for completing the program early, so you can feel free to add anything extra into your settlement account to get out of debt faster.

Do you have any questions about any of the numbers we just covered?

The following terms are an important part of our agreement with you, so let’s talk through them.

On the Enrollment Agreement, you will see estimated settlement amounts. We want you to understand that these are estimations based on ClearOne’s prior results. Actual settlement amounts and the period required to settle your debts are estimates and are likely to vary by Creditor. If you’ve opened any accounts within the last 6 months, we want to advise that you may see less favorable settlement percentages and longer than usual settlement timeframes on those accounts. While ClearOne cannot force every creditor to settle, most creditors are eager to negotiate. It’s not uncommon for creditors to transfer your account to a collection agency, so during the program the debt we settle may be different from your original creditor.

You have explained that you are experiencing financial hardship and will be voluntarily stopping minimum payments required by your creditors. Remember that this involves disabling any autopay features setup with any of your creditors we’ve enrolled. As a reminder, when you do this, your accounts will likely be reported to the consumer reporting agencies as late, charged off or past due. Therefore, you will have a negative impact to your credit rating. Your creditors may continue to pursue collection efforts while you’re enrolled in the program. These may include:

  • Phone calls and letters to you
  • Sending past due accounts to collection agencies
  • Potentially litigating against you

Have you been served legal paperwork on any of your enrolled accounts?

Generally, the more money you can add into your settlement account, the sooner they will be able to start negotiating settlements for you. So, feel free to add anything extra into your dedicated account to get out of debt faster. Please note that while this is helpful, it is not required.

ClearOne will contact you when we receive settlement offers. It’s very important that you respond timely because they need your authorization to approve the settlements and release your settlement account funds to your creditor. Their negotiators are always trying to work to get you the best offer and will contact you from time to time with the opportunity to do a special draft into your settlement account. This can help reach a settlement faster on your accounts. You’re not obligated to do a special draft when ClearOne calls but they always want to communicate those possibilities to you.

You may face a tax consequence in the form of a 1099 because creditors must report the amount of debt that is forgiven for tax purposes. You may be eligible to file an IRS 982 form to discharge the tax based on insolvency. You should consult your tax advisor.

What questions do you have about the information we just went over? Please go to your email, so I can walk you through your enrollment agreement and finalize your paperwork.

Now that you are a ClearOne Advantage client, starting today you can voluntarily stop your payments. You also want to make sure you deactivate any autopay associated with your enrolled accounts. You will have access to the online portal where you will be able to chat directly with ClearOne’s customer service representatives. Chat hours of operation are Mon-Fri 8 am – 8 pm EST, and Saturday 9 am – 6 pm EST. From the client portal you can manage your settlement account, check your progress, and use the client chat feature for assistance. You can also reach out to the CLG team at 888-768-4767, Mon-Fri from 9 am to 8 pm EST. You can also email any questions to customerservice@clearoneadvantage.com. Please understand there is a 24-48 hour response time for email

Congratulations (client name), you’ve made the right decision today and you are in great hands with our trusted partner ClearOne. Have a great day!