Truth and Transparency

New Era uses a Performance-Based Fee Model. All of our fees are billed only after a settlement has been reached. You do not pay monthly administrative fees, and you do not pay for services not rendered.

While New Era has utilized a performance-based model for over a decade, the FTC has made this a requirement effective October 27, 2010. Unfortunately some companies continue to charge fees upfront.

New Era has experienced a drop out percentage of 18.28%. The reasons are broken down into categories listed in question #7. We credit our performance-based pay model and the motivation of our clients with our exceptionally low dropout rate.

Debt settlement programs are designed to be completed in 3 to 4 years, but New Era clients historically average a completion time of only 27.73 months

New Era has settled the accounts for an average of 37.09% of the account balance at time of settlement. This means that New Era has negotiated an average 62.91% reduction on the consumer’s behalf.

However, it is important to understand that during the pre-negotiation and negotiation phases, the account balance will continue to grow due to interest and fees charged by the creditors. Even considering the growth of interest and fees charged by the creditors, New Era on average settles the debt for 43.73% of the enrolled balance, which means the average consumer will realize a savings of 56.27%.

Please keep in mind, these numbers do not include any fees charged by New Era Debt Solutions.

While litigation is an available tool utilized by some creditors to motivate consumers to make a payment, only 6% of New Era client accounts ever experience any sort of legal activity.

In the unlikely event that any legal activity occurs, New Era continues to negotiate on the client’s behalf to reach a settlement. Less than 1% of all client accounts experience any escalated levels of legal activity such as a lien or wage garnishment.

Banks require collections calls as part of the charge off process. For that reason, all clients may continue to receive calls.

However, New Era provides education for all clients on the Fair Debt Collection Practices Act to identify any potential violations. New Era also utilizes a variety of strategies to mitigate the calls, including but not limited to communications with the creditors.

While most clients enter into a program with the greatest of intentions, sometimes “life happens” and the greatest of plans can get abandoned.

Below you will find the statistics of clients that have left the New Era program prior to completing. The results are based on many factors, some of which are completely out of New Era’s and/or the client’s control.

Reason
Situation became worse client filed for bankruptcy – 10.36%
Not a good fit – 1.56%
Dissatisfied – 1.15%
Misunderstood the program – 0.86%
Lawsuit – 0.25%
No reason given – 4.10%