About CompanyNelson & Gray Advisory, Corp. - Overview:
Nelson & Gray Advisory, Corp (NGAC) is very confident of the firms competitive position related to major competitors. Continious analysis of other debt settlement companies is performed and evaluated using criteria of fee structure, maintenance of client’s funds, and the effect on client’s credit history. One such advantage the Company demonstrates is providing a third party agency that manages the clients funds in an F.D.I.C. insured saving account, ensuring that the client maintains full control and ownership over their allotted funds at all times. Many companies across the industry do not provide such a service. Responsibility for client’s funds is time consuming, and creates liability for the Firm. Therefore, Nelson & Gray Advisory engages the services of Global Client Solutions for performing all transaction and recording functions for our clients throughout the duration of related debt management programs for the purpose of ensuring the highest level of service is provided for our client\'s best interests..
An advantage the Company holds over its competitors is the fee structure to be implemented. Fees are performance based, ensuring business operations of the firm focus on the best interest of the client. It is common in the industry for companies to determine fees upfront prior to actual specific performance. NGAC believes this fee structure to be both ethically questionable, and unfavorable for internal operational performance. In deciding on a performance based fee structure, we have aligned our interest as an organization along with our client’s interests of eliminating their debt at a savings. In addition to the aligned interest between the customer and Nelson & Gray Advisory, the owners believe that an Increased requirement for attention to client accounts, the results will minimize negative effects on client attrition ratios.
Nelson & Gray Advisory, Corp. -Company Summary:
Management of the company has significant previous experience in the capacity of consulting, advisory, and client enrollment capacities associated with debt management services, and related skill sets necessary for the successful operations of the day to day functions of the organization’s core business practices. For the purpose of ensuring exposure and access to a nationally Inclusive marketplace the company shall register and operate within the specific role of a consulting/advisory organization to Include the following:
1. Provide consultation, review and analytic assistance to prospects and clients, so to accurately and responsibly make recommendations to improve the client’s current financial condition;
2. Provide ongoing consulting and support services to clients throughout the designed debt settlement program detailed in the executed service agreement generated by the company, while also in association with strategically identified, affiliate debt management companies & specialized professionals contracted by us, for the purpose of providing our client base commercially best efforts of ensuring attention and treatment of debt settlement programs provided by Nelson & Gray.
Nelson & Gray Advisory, Corp. - Management:
The Founders of the Company all have proven track records of successful performance within the debt settlement industry. Specifically, the Officers previously developed and operated a debt settlement consulting division for a competitor company. Over a 24 month timeframe we increased “previous company” revenues 6x, strategically developed and executed various marketing programs, structured and nurtured the growth of an effective customer service department, and played key roles in the communication of various critical happenings related to settlement services performed for clients so to effectuate industry leading retention ratios. All members of Management discussed herein demonstrate very favorable skill sets required to successfully perform duties and responsibilities related to the core competencies of the Company’s operations. Additionally, CEO Christopher Nelson also has experience in start-up operations, investment banking & corporate financial advisory, with an Ivy League education from Harvard University.
Nelson & Gray Advisory, Corp - Debt Settlement Industry Analysis, Structures and Pricing:
Within the Industry the variety of fee structures offered, there is a specific distinction that needs to be clarified between Debt Settlement / Debt Negotiation companies and Consumer Credit Counseling / Debt Management Plans. Debt Settlement / Negotiation companies do not receive a “fair share” or “kick back” from banks, creditors, collection agencies, or attorneys. Debt Settlement / Negotiation companies do not receive a “fair share” or “kick back” from banks, creditors, collection agencies, or attorneys. This is one of the most easily recognizable differences between Debt Settlement / Debt Negotiation and Consumer Credit Counseling / Debt Management Plans. Debt Settlement / Debt Negotiation is funded by fees collected from consumers, for services or future services to be provided.
Study of our competition has provided the company a timely perspective on important dynamics in our target market Including the effects of regulatory agencies, apportionment of market share, pricing strategies, and even the strengths and weaknesses of the management teams who head up the companies that make up the competition.
NELSON & GRAY ADVISORY, CORP - Industry Analysis
Debt settlement companies benefit the consumer, the creditors, and the economy. They help the overloaded bankruptcy courts by working with consumers to resolve their outstanding debt and help avoid bankruptcy all together. Creditors who work with debt settlement companies quickly learn that their liquidation rates improve monthly while their overall expense to maintain and work accounts decreases. The consumer benefits by effectively eliminating the outstanding unsecured debt, allowing the consumer to become more financial stable and work on eliminating the secured debt, such as a mortgage, car loan, or student loan. The economy benefits by the creation of new employment, in which most positions do not require a college degree. Certifications for employees are available, and training programs such as MSTARS (www.MSTARS.com) help educate and properly train new employees.
Debt settlement is a viable alternative to bankruptcy, consumer credit counseling, and the consumer just avoiding the situation altogether. While debt settlement is still in its infancy with regulation, both state and federal, it is important to note that industry organizations, such as USOBA, have taken steps to both initiate and communicate to the governing bodies that fair regulation is required for both the consumer and the debt settlement company. Prudent debt settlement companies regulate themselves to remain in compliance with both state and federal statute.
Debt Settlement Process: The consumer begins saving money, whether in a personal account, or a specialized account with a third party, separate from the debt settlement company. The debt settlement company will provide communication, in the form of a limited power of attorney, or a permission to communicate form, to the creditors enrolled in the program. Normally, most creditors require that an account be at least one hundred and twenty (120) days delinquent before any settlement will be entertained or offered. This means that for most of the beginning months of the program, negotiating with creditors is limited, should the consumer be current or up to date with the creditors enrolled in the program. For consumers who are behind, negotiations can begin almost immediately, depending on how much money the client is saving on a monthly basis.
It is common place for a debt settlement company to have contacts, or representatives that continually do business with debt settlement companies, at a creditor or collection agency. As well, there are creditors and collection agencies that have developed, or are in the process of developing specific departments to work with debt settlement companies. For these creditors and collection agencies, working with debt settlement companies allows them to handle a large quantity of accounts with a small amount of manpower, in essence maximizing the returns on their liquidation rates. Some of the creditors and collection agencies will even request that a debt settlement company forecast the approximate time period of when the consumer will have enough funds to offer or take advantage of a settlement. For creditors and collection agencies that do not have specific departments setup to work with debt settlement companies, the process is more complicated. The debt settlement company must work with a representative or collector who is assigned to the account. This does not always mean that the representative or collector is familiar with debt settlement and how it works. Normally in this situation, the debt settlement company will have to negotiate several times before there is an acceptable offer received from the creditor and / or collection agency. In some cases, the debt settlement company will speak to a manager, or will have to wait for approval of a settlement by a member of upper management. Either way, the consumer is notified of every offer that is made by a creditor or collection agency. This allows the consumer to realize that the debt settlement company is working for them, and it also allows the consumer to make the final decision as to what offer is accepted and paid. In most programs, the consumer does have the option to take any settlement offer that is provided by the creditor or collection agency. That does not mean that the debt settlement company will recommend that a consumer take the first offer available, but the debt settlement company, using historical settlements with a creditor or collection agency, should be able to inform the consumer of whether or not a lower or “better” settlement offer is a realistic possibility. A major component of the debt settlement process is consumer participation. Consumers who enroll with debt settlement companies must understand the need for constant lines of open communication; between both the consumer and the debt settlement company. When there is a lack of communication, no matter which party is at fault, inevitably the consumer suffers. To prevent a drop in communication, many debt settlement companies will utilize a separate department whose main purpose is to remain in constant contact with consumers, keeping consumer’s contact information and financial situation as up to date as possible.
Nelson & Gray Advisory, Corp -Legal, Regulation, and Compliance:
In the rapid growth, dynamic environment of credit counseling and debt settlement, it is critical to maintain the most current knowledge and understanding of the industry. Both industries are in a state of great transition. Of equal significance is keeping abreast of the seemingly ever-changing body of federal and state rules, regulations and laws, as well as anticipating future legal and regulatory trends, so that our clients can support or counter them.
In 2005, the Uniform Law Commissioners promulgated the Uniform Debt-Management Services Act (UDMSA). It provides the states with a comprehensive act governing these services that will mean national administration of consumer credit counseling and debt settlement services in a fair and effective way. UDMSA may be divided into three basic parts: [1] registration of services, [2] service-debtor agreements and [3] enforcement. Each part contributes to the comprehensive quality of the Uniform Act. |
