Here is a breakdown of a standard agreement with any Debt Consolidation Company. Don't expect a refund when they don't perform. Don't expect this to help your credit (it will be destroyed). Don't expect to pay less than 80-85% of your total debt when the dust settles. 

You will notice that they are telling you upfront to expect to pay 73% of your total debt in various fees and debt payments. What they don't tell you is that any savings you receive will probably be counted as income on your taxes raising your tax liability and potentially preventing you from receiving a refund. 

Bankruptcy is always a better, faster, cheaper and better for your credit option than debt consolidation. 

🔹 Summary of Key Terms

💵 Total Client Payment Obligations

• Total Enrolled Debt: $44,480.00

• Estimated Settlement Amount (43%): $19,126.40

• Company Fees (Total 30%):

  • Dispensation Fee (20%): $8,896.00

  • Retainer Fee (10%): $4,448.00

• Administrative Fees: $55 weekly (totaling $1,925 over the program)

• Total Program Payment: $35,445.25

• Weekly Payment: $861.35 starting 5/10/2024 (see payment schedule in Exhibit A)

The client pays approximately 73% of the total enrolled debt over the course of the program.

📜 Client Obligations

1. Make Weekly Payments into a dedicated settlement account starting 5/10/2024.

2. Cooperate with Debt Consolidation Company and respond promptly to communications.

3. Do Not Incur New Business Debt during the program.

4. Enroll in a Legal Plan (Debt Consolidation Company Business Legal Plan or similar) to assist with any legal issues.

5. Provide Accurate Information regarding enrolled debts.

🏢 Company Obligations

1. Negotiate Settlements for the listed business debts in good faith.

2. Keep Client Informed of settlement progress and material changes.

3. Contact Creditors to verify enrolled debt amounts if necessary.

4. Facilitate Settlements using the funds in the client's settlement account.

The estimated program duration is 9 months, though this may vary.

❌ What Happens if the Client Cancels or Breaches the Agreement

Debt Consolidation Company may terminate the agreement without further obligation if:

• The client misses payments;

• Refuses to approve a good faith settlement;

• Fails to cooperate with the company;

• Breaches any terms of the agreement.

If the client settles directly with a creditor or removes a creditor from the program, Debt Consolidation Company is still entitled to a 20% fee on the remaining balance with that creditor.

⚠️ What Happens if Coastal Debt Resolve Cannot Perform

While the agreement does not expressly guarantee performance, it:

• Limits liability of Debt Consolidation Company to the amount of fees paid by the client.

• Provides no warranties on fitness or outcomes.

• Includes a hold harmless and indemnification clause protecting the company from claims arising from failure to follow advice or company actions.

• States the client waives claims against Debt Consolidation Company for following or not following company recommendations.

⚖️ Dispute Resolution

• Binding arbitration in Broward County, Florida, under AAA rules.

• Class action waiver: Parties may only bring individual claims.

• Both parties share arbitration costs equally (excluding attorney's fees).

📍 Legal Notes

• This is a non-legal service agreement; Debt Consolidation Company is not a law firm and does not provide legal or tax advice.

• The agreement contains a Limited Power of Attorney, allowing Debt Consolidation Company to communicate with creditors on the client's behalf.

Let me know if you'd like this turned into a formal client memo or letter, or if you want a risk assessment or recommendation regarding signature or enforcement.

The Dispensation Fee in the Debt Consolidation Company Business Debt Resolution and Settlement Agreement is:

📌 Definition and Amount

• A fee charged by the company equal to 20% of the original enrolled debt balance for each creditor listed.

• Based on the contract, the total enrolled debt is $44,480.00, so the Dispensation Fee is $8,896.00.

💬 Contract Language (Section 4a):

“Company charges a dispensation fee of 20% of the amount of each debt on the Effective Date as reflected in the Schedule of Enrolled Debts... This is not used toward payments to creditors.”

💰 Purpose

The Dispensation Fee compensates the company for negotiating and managing the debt settlement process. It is separate from the amount paid to creditors and is earned even if the creditor settles directly with the client.

⚠️ Important: If the client bypasses Debt Consolidation Company and settles directly with a creditor, the client still owes Debt Consolidation Company 20% of the balance owed to that creditor.

Let me know if you'd like help evaluating the reasonableness or enforceability of this fee under applicable state or federal law.

Under the terms of the Debt Consolidation Company Business Debt Resolution and Settlement Agreement, the ability for a client to recover money paid is extremely limited and highly restricted. Here's a breakdown of the key provisions that address refunds or repayment:

🔒 1. No Express Right to Refund

There is no clause in the agreement that gives the client an express right to a refund of any fees or payments already made—even if the client cancels.

💼 2. Company Fees Are Earned and Non-Refundable

• The dispensation fee (20% of enrolled debt) is due even if the client negotiates a settlement directly with a creditor.

• Once a fee is debited from the settlement account, it is treated as earned, not held in trust or escrow for future performance.

• Fees are charged before most settlements are reached, meaning the company earns payment prior to performance.

Quote from the contract (Section 4a):
“The dispensation fees payable to Company is collected and paid over the first half of your Program Duration... Company shall be entitled to a fee of 20% of the balance then owing to that creditor... even if a creditor offers to settle directly with you.”

❌ 3. Client Breach or Termination Does Not Trigger Refunds

If the client:

• Misses payments;

• Refuses a proposed settlement;

• Or otherwise breaches the agreement—

Then the company can terminate the agreement without any further obligation and keep all previously collected fees.

⚖️ 4. Limitation of Liability / Damages

• The agreement limits Debt Consolidation Company's liability to the amount of fees paid, but it does not promise refunds.

• The client waives rights to damages beyond what they've paid, and even those may not be recoverable.

Quote from Section 6g:
“Liability under this Agreement... is limited to the amount of fees paid by Client... and received by Company.”

⚠️ 5. Arbitration-Only Dispute Resolution

• Disputes must be resolved via binding arbitration in Florida, not in court.

• There's also a class action waiver, meaning the client must arbitrate individually.

This limits legal avenues for recourse or collective action (e.g., joining a class suit over refund policies).

✅ Possible—but Unlikely—Paths to Recovery

While the contract is written to deny or discourage refunds, a client might still seek recovery of funds in these limited cases:

1. Violation of consumer protection laws (e.g., if Debt Consolidation Company is not properly licensed or misrepresented its services).

2. Failure of consideration—if Debt Consolidation Company collects fees but does nothing.

3. Unconscionability—if a court finds the terms grossly unfair (rare, given arbitration clause).

4. State cooling-off laws—some states (e.g., California) require limited cancellation windows for certain contracts, but this contract does not provide a statutory cancellation right, and likely waives it via arbitration.

🧾 Conclusion: Can You Get Your Money Back?

Under this contract as written:

• No, you cannot expect a refund once fees are paid.

• Recovery is only possible through legal challenge or arbitration, which is limited by the contract's own terms.