New Day Financial Solutions is a member of the American Fair Credit Council and has agreed to follow industry “best practices,” as endorsed by the AFCC, including disclosure of the following matters as an integral part of its contract with consumers.

New Day Financial Solutions provides consumers with a debt resolution service more popularly known as debt consolidation. Debt consolidation is the negotiation of less than full balance consolidations of unsecured debt on behalf of consumers who are experiencing financial hardship. New Day Financial Solutions wants you to understand both the potential benefits and risks that may arise out of your debt consolidation program and to be sure you have reasonable expectations regarding all potential outcomes.

BY SIGNING BELOW, YOU ARE CONFIRMING THAT New Day Financial Solutions HAS EXPLAINED TO YOU, AND YOU UNDERSTAND, ALL THE ISSUES SET FORTH BELOW. If you wish to discuss or comment on any of these disclosures or discuss any aspect of your debt consolidation program, please email us at [email protected] with your contact information and the AFCC compliance department will respond to you as quickly as possible.

  1. You are enrolling into a debt consolidation program. The objective of your debt consolidation program is for New Day Financial Solutions to negotiate mutually agreeable resolutions between you and each of your creditor(s) for the resolution of your unsecured debt(s), which are itemized as part of your enrollment agreement and are referred to as Enrolled Debts. You understand and acknowledge that no specific results can be predicted or guaranteed.
  2. You will be responsible for saving sufficient funds to enable New Day Financial Solutions to negotiate debt resolutions on your behalf. In order for New Day Financial Solutions to negotiate on your behalf, you must adhere to a regular schedule of deposits. These funds will be deposited into a separate FDIC-insured bank account that you and only you will control. Under no circumstances will New Day Financial Solutions have custody or control of the funds you set aside.
  3. The savings program necessary to settle your debts is detailed in your enrollment agreement. Summaries of the minimum monthly savings amount and the estimated period needed to settle all of your debts have been prepared for you. Actual resolution amounts, and the period required to settle all of your debts are likely to vary, possibly substantially, from these estimates, based on creditor behavior, your ability and willingness to keep to your deposit schedule and other factors.
  4. While most creditors and collectors are eager to negotiate with debt consolidation service providers, New Day Financial Solutions cannot force creditors to negotiate with them or to accept an offered consolidation. Communications with creditors are handled on a case by case basis. Some creditors may not be contacted for several months after you enroll.
  5. New Day Financial Solutions is not a credit counseling service and does not make regular payments on your behalf to your creditors. Your creditors may continue to pursue collection efforts on delinquent accounts while you are enrolled in a debt consolidation program. Such collection efforts can include phone calls and letters to you, sending delinquent accounts to collection agencies or even filing a lawsuit against you.
  6. Your debt consolidation program assumes an effort that will continue for many months. The time needed to produce a consolidation of a given debt depends on several factors. These include (a) your financial hardship, (b) the age and balance of the accounts that you owe, (c) the funds you have available to pay to your creditors for a consolidation and (d) the willingness of your creditors to enter into debt consolidation negotiations. While no guarantees can be given, generally the more money you are able to set aside the sooner New Day Financial Solutions will be able to start negotiating consolidations for you.
  7. Fees paid to a debt consolidation services provider such as New Day Financial Solutions are not available to pay creditors. The fees paid to New Day Financial Solutions are intended to compensate them for their efforts and will only be refundable to the extent they have not been deemed to have been earned in the manner described in the Client Agreement. Those fees are not being set aside or held in escrow to fund debt consolidations.
  8. New Day Financial Solutions is not a law firm and does not and cannot provide legal advice or counsel, and your signature, below, acknowledges that you have been advised of this. Should you be sued, you should consult with a lawyer licensed to practice in your jurisdiction.
  9. You have told us that you are in a verifiable state of financial hardship and are unable to meet, on an ongoing basis, the minimum periodic payments required by your creditors to pay off your debts. If you do not make the minimum periodic payments on your debts your delinquencies will likely be reported to the consumer reporting agencies as late, delinquent, charged-off or past due balances. Your creditor may also raise the interest rate on your account and impose other penalties, such as late fees, over-limit fees and the like. Until your account is charged off, your account balance may continue to grow as your creditor adds accrued interest and fees and penalties, and, if negotiations are unsuccessful, you could be called upon to pay the entire balance. Even if we are successful in negotiating a less than full balance resolution for you, your creditor may report to the credit reporting agencies that the account was “settled for less than the full amount.”
  10. When your creditor agrees to settle a debt, a savings of $600 or more (meaning at least $600 less than what you owe at the time of consolidation) may be reported by your creditor to the IRS as Discharge of Indebtedness income. You should consult your tax advisor to determine whether your individual circumstances require you to include any Discharge of Indebtedness Income in your reportable income, or whether you qualify for an insolvency exclusion. For more information on tax ramifications to you personally, refer to the IRS website IRS Publication 908-“Bankruptcy Tax Guide” and IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness.

To summarize, each case is unique and results, dependent as they are upon both your ability to set aside sufficient funds and your creditor’s willingness to negotiate a less than full balance consolidation, may be expected to vary widely. For consumers in verifiable states of financial hardship, a debt consolidation program can be a very effective way to resolve unsecured debt, but it is not a painless process and no guarantees as to consolidation amounts or timing can be given.

Finally, we encourage you to report any concerns with your debt consolidation program directly to the AFCC via email: [email protected].

DISCLAIMER: Copyright New Day Financial Solutions. Clients who make all of their monthly program deposits are estimated to pay approximately 70-80% of their original enrolled debts over approximately 24 to 48 months including program fees. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. Our estimates are based on prior results along with industry data, which will vary depending on your specific enrolled creditors and your individual program terms. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt consolidation services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated consolidations we obtain on your behalf resolve the entire account, including all accrued fees and interest. New Day Financial Solutions does not discriminate on the basis of race, color, religion, marital status, gender, age, national origin or ancestry.