About the I.A.P.D.A.

 

 

 

Membership in the IAPDA provides training, certification, debt settlement industry knowledge, legistlative updates and important peer credibility to our members.

 

The International Association of Professional Debt Arbitrators grew from the commitment of its members to the establishment and maintenance of the highest standards of ethics, professional conduct, and responsible trading, for members operating in the Debt Settlement industry. The evolution of the services provided, and the rapid deployment of Internet and related technology, has meant that this sector of the market has grown in size and range of services. This Professional Third Party Debt Arbitration/Settlement sector now handles a much greater depth of services than at any other time in history.

 

A commitment to our Code of Ethics has helped to build the IAPDA to be a primary, specialist voice for the Debt Arbitration/Settlement industry in North America. That voice is important to the Debt Arbitration profession. We provide a resource focused on ensuring fairness, equity and professionalism in the conduct of our members. The IAPDA provides a point of contact for legislators, community and consumer interest groups and industry.

 

The IAPDA seeks to differentiate our members and to provide some guarantees to users and all businesses that, as a group of professionals representing this sector in the North American market, we are committed to our Code of Ethics and to maintaining the highest standards of professional conduct.

 

IAPDA Certified Debt Arbitrators and Certified Debt Specialists are respected professionals in the Debt Settlement industry. Clients, creditors/collectors and collection attorneys all recognize the commitment of our members to training, certification and membership in the IAPDA. Leading Debt Settlement professionals fully understand the value and the return received for their initial business investment in training, certification and membership.

 

IAPDA membership is comprised of individuals with firms of all sizes from small (1-4 members) to many of North America's leading and largest Debt Arbitration & Settlement firms. We are the only Certification program focused on Certifying individual Debt Professionals rather than the Debt Settlement company. See our Member Links page for firms with IAPDA Certified members.

 

We hope that users of the services our members provide, will support the individuals and organizations that meet the tests for membership of the IAPDA. These members share a commitment to professionalism, business ethics and community values.

 

>> Learn More About The Professional Debt Arbitration Training Program

(the training course Table of Contents)
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Our Featured Question & Answer of the Day For Wednesday

 

Q. How does Debt Settlement hurt my credit?

 

A: How Debt Settlement affects your credit depends on many factors. The primary factor has to do with how your credit rating is now.

 

 If you have perfect credit, or even slow credit, Debt Settlement will derogatorily affect your credit. If however, you already have accounts that are over 4, 5 or 6 months past due, it may not affect your credit any worse than it already is. 

 

When a revolving account becomes past due, typically over 180 days, the account is “written to profit and loss” by the creditor. This is lender lingo for what is also known as a “charged-off account” or “charge-off”. This profit and loss status or charge off status is reported to the 3 credit bureaus. 

 

It doesn’t matter if the “charge off” occurred prior to enrolling into a settlement program or occurs after enrolling into the program, a charge off is a charge off no matter how you cut it.  

 

The delinquent status and subsequent charge status will be reported on your credit file, in either case.  

 

Creditors report monthly payment history using number – it is a little confusing because one credit bureau uses 1 as current and paid as agreed, while another uses 0 as paid as agree.  

 

Depending on the bureau, the numbers used to report account payment history is commonly 1, 2, 3, 4, 5, and 9. A Charge off is reported on your credit file as a “9” on your credit file.  

 

Over 60, 90, 120, 150 and 180days, charge-offs and written to profit and loss, are all considered derogatory credit remarks and will remain on your credit file for up to 7 years.

 

 If all these next statements are true, then debt settlement may not be the right course for you: 

 

1) Good credit is important to you

 

2) You have the means to pay off your debt in full by making required monthly minimum payments

 

3) You can afford the high interest charges associated with paying off unsecured debt. 

 

While debt settlement will adversely affect your credit score, there are many factors that influence your overall credit. In addition to your credit fico score (a number between 350 and 900) another major factor in determining your credit worthiness is your debt to income ratio. If you are maxed out on your credit lines and your debt to income ratio is out of sight, you are most likely not bankable – therefore, in many cases, even having a great credit score is not as valuable as it may seem. Therefore, you must liquidate your debt in order to get your debt to income ratios in line. Either way, you may have credit problems. So the question might be, how do you want to resolve the problem?