Debt Settlement Company Lands Toughest License In Industry

Dec 23, 2008

Fort Lauderdale, Fla., Dec. 23, 2008 – Greenspoon Marder, P.A. is the first law firm in the country to secure licensing for a debt settlement company, in the toughest state in the country. This month, the Office of the Attorney General of Colorado registered Century Negotiations, Inc. to operate within the state. There are only two other licensed debt settlement companies in Colorado, which enacted comprehensive licensing and registration law in January. Currently, only five states have specific licensing requirements for the industry.

“This is a milestone for the debt settlement industry,” said Robby Birnbaum, attorney and chair of Greenspoon Marder’s regulatory compliance and defense practice. “Because the industry is relatively new and rapidly growing, debt settlement companies have been operating without much specific, pro-business guidance from the states. Now, with this decision, the government is recognizing that legitimate debt settlement companies serve a purpose for consumers, when operated within the confines of the law.”

Next year, at least 15 other states are expected to follow Colorado’s lead in licensing requirements. The state law allows debt settlement companies to operate profitably, but in exchange, the companies are subject to intense government scrutiny. In order to gain Century Negotiations’ license, Birnbaum worked with the company to refine their business practices and meet near-impossible requirements, such as securing extremely low deductibles on insurance policies.

“We cut through a lot of red tape and even audited Century Negotiations’ prior activities,” said Birnbaum. “The licensing and registration process is tough but necessary. There are debt settlement companies that fill a legitimate consumer need, especially in this economy. Consumers need to know which companies are passing the test and which ones are not.”

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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Debt Settlement Company Lands Toughest License In Industry

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