Debt Resolution Plan (DRP) - Service Extension for
DMP Unqualified or Disqualified Clients

The Debt Resolution Plan™ (DRP) is a modified Debt Management Plan (DMP) designed strictly for consumers who cannot qualify for a full balance DMP and are considering filing bankruptcy or customers with insufficient income. The 36-month DRP is a new programmatic debt reduction alternative to debt settlement that aids consumers by determining what a consumer can afford to pay using a sophisticated empirical “means test” while assisting the creditors’ collection activities with a transparent assessment of the consumer’s true financial situation. DRP actively promotes rather than restricts communication between consumers and creditors. Clients are actively counseled NOT to extend their account delinquencies to charge-off status.

USA Today Cover Story: Drowning in credit card debt? Debt settlement can be tricky.

The DRP is designed to encourage consumers to perform in the nonprofit credit counseling environment as they seek realistic debt repayment plans as an alternative to debt settlement or bankruptcy. The recognition of the widening disconnect between unrealistic creditor collection policies and consumer debt repayment capacity is the underlying principle of the DRP™ program. The consumers’ empirical assessment and certified ability to pay – as guided by an algorithmic means test that is based upon U.S. Federal Government bankruptcy and taxation policies - offers a new innovative approach to consumer debt collection and recovery practices to help close that gap.

“The DRP provides consumers and financial institutions an independent, transparent, fair and quantifiable way to assess consumers’ ability to repay their debts without the stress of unrealistic collection demands or the legal expense of filing for bankruptcy.” ~ UT House Speaker David Clark

“The DRP offers consumers in desperate need of debt relief a fully legal and regulatorily compliant safe haven from unscrupulous debt negotiators. This program will save many honest people from becoming victims of debt negotiation scams that promise to 'get you out of debt for pennies on the dollar' while paying thousands in fees and then filing for bankruptcy anyway.” ~ Utah Attorney General Mark Shurtleff

Press Release: Credit Counseling Steps into the Ring with a New Debt Relief Program

Is the DRP similar to a traditional Debt Settlement plan?
No. The DRP plan is administered by an acredited nonprofit consumer credit counseling agency and NOT a for profit debt settlement company. Therefore, based upon its nonprofit charter, a credit counseling agency will always work for the best interest of the client. There are many other reasons the DRP plan is different than Debt Settlement. Most notably, the third party evaluation conducted by the RDR Institute for qualification to the DRP plan. The objective RDR Assessment precisely calculates a consumer’s capability to repay unsecured debts based upon RDR Institute’s innovative algorithmic software and Certified RDR Counselors.

What is included in the RDR Debt Assessment?
The RDR Debt Assessment consists of a 20-30 minute personalized counseling session that calculates an individual or household’s ability to repay unsecured debts, such as credit cards, medical bills, and personal loans. Based upon the results of the innovative RDR Debt Assessment, counselors will recommend the best debt resolution program for the individual or household. Programs include a traditional full-payment Debt Management Plan (DMP), a Debt Resolution Program (DRP), or bankruptcy as the least preferred option.

How long does the RDR Debt Assessment take?
The RDR Debt assessment typically takes about 20-30 minutes, depending upon the complexity of the client’s household finances. After completing the RDR assessment, each client will be informed If s/he qualifies for the DRP program.

Does the RDR Institute provide Debt Management Relief services?
No. RDR Institute does not provide any debt management relief administration services. RDR is not responsible for administering the debt repayment assistance program you may choose or the results produced by your service provider due to the unique situation of each consumer. RDR suggests particular service providers’ based on their adherence to industry "best practices" as specified by their respective accreditation agencies.

How does RDR Institute protect personal financial information?
RDR Institute and its affiliates adhere to industry best practices including security requirements as mandated under the Gramm-Leach-Bliley personal information security statutes. All personal consumer information is maintained in a secure data storage system that adheres to the highest security standards; personal information is NOT provided to debt assistance service providers or anyone else without the explicit consent of the customer. All identifying personal information is deleted 18 months after completing or dropping out of a debt assistance program.

Who will I be talking with during the RDR Debt Assessment?
RDR Institute credit counselors all hold higher education degrees and have experience in counseling and instruction of financial matters. Each RDR counselor participants in continuing education to learn the ever-changing personal finance landscape. Our expert financial counselors are continuously monitored for their business ethics; all RDR counseling sessions are recorded and monitored for ensuring the highest quality service.

How much does the RDR Debt Assessment cost?
The RDR Debt Assessment fee is $45 for individuals or households. You can cancel the RDR assessment before completing the counseling session and receive a full refund. If you do not qualify for the DRP Program and wish to be re-evaluated at a later date, you may request a second assessment within 60 days without paying an additional fee.

What are the fees for the DRP Plan?
Service fees vary according to state regulations of supervised Debt Management Plans (DMPs).

Top Reasons the DRP Plan is NOT Debt Settlement

• RDR algorithmic software provides an arithmetic estimate of consumer debt capacity that identifies the most appropriate debt resolution plan : full, partial, bankruptcy.
• The agreed repayment plan offers creditors a net payment that ranges from 20%-99% over 3 years.
• DRP actively promotes rather than restricts communication between consumers and creditors. Consumers are actively counseled NOT to extend their account delinquencies to charge-off status.
• All creditors are treated equally with pro-rata monthly payments. In contrast, Debt Settlement programs only execute sequential, single settlement payments (typically 40%-50% of outstanding balance) to creditors after the consumers’ debts have been “charged-off.” .
• Client payments to creditors are NOT escrowed by partial payment service providers. Instead, consumers authorize electronic payments directly to creditors from their checking or savings accounts via electronic funds transfer.
• Rapid creditor approval will typically result in the creditor receiving an accelerated pay-down until other creditor acceptances are received. In no event will any single creditor receive more than the distribution amount detailed in the Certified Debt Resolution Plan.
• DRP works through accredited, nonprofit Credit Counseling Agencies (CCA) and therefore does not generate aggressive mass marketing campaigns with high pressure sales staff. CCAs cannot influence RDR repayment plans since they are developed by third-party provider.
• RDR assessments produce precise repayment plans based on financial information that is verified and affirmed by sworn affidavit of consumers.
• Service fees vary according to state regulations of CCA supervised Debt Management Plans (DMPs).
• The customized DRP Plan may qualify unsecured creditors for “work-outs” rather than principal “charge-offs” depending upon regulatory charter of bank and estimates of non-principal reductions of outstanding debts.