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Debt Management Club - A Godsend?
Or A Scam?

Long distance as low as 2.9 cents per minute...Click here for details and sign-up.


Does this look or sound familiar?

"Suppose There Was a Way To:

*Pay off a 30 year mortgage in much less time-
*Pay off all your credit card debt-
*Pay all your debts without a bankruptcy
*Pay off student loans-
*Pay off business loans-
*Pay off judgements-
*Pay off child support-
*Pay off IRS liens-
*Pay off property tax liens-
*Pay rent and leases-
*Pay off phone,utility,etc. bills-

Well, there is!
Yes! We’re not-for-profit. We’ll pay your debts, and you never have to pay us back - ever!..."


Get bills paid for FREE?!?! Now, does that sound like a cool deal or what?? No interest rates to worry about, no credit check, no papers to fill out, no nothing!!
You're probably thinking, How do I sign up and how does this work....right?

The sad fact is, the Debt Management Club (or DMC) does not work.

In fact, it's most likely a pyramid scheme.


What is a pyramid scheme? Is it similar to MLM? In some ways, yes - however, there is a very important distinction. I'll let the author of Pyramids, Ponzi Schemes and Other Frauds explain:

"...With a legitimate MLM, you have a real product, that is of significant value in and of itself. Most of your profit comes from the sale of this product to people who will use [it] according to its own value and usefulness...not just try to sell it to someone below them. Though MLM encourages you to build a “downline”, so that you can make some profit by taking a cut of the sales made by those below you, you do not need to recruit even a single person below you into the pyramid in order to profit....

"In those pyramid schemes which try to pass themselves off as MLM, your “product” is something that has very little inherent value, if any at all, beyond the requirement that one must buy it from you in order to join your “downline”. The “product” may consist of worthless reports or even electronic codes to unlock a software-based pyramid scheme. Nobody would buy these “products”, except as part of joining the pyramid scheme itself. The only opportunity for profit is in getting people to join the pyramid in levels below you."


Let's break the components of the DMC down, you and I, and see what we get. Then you can decide for yourself if this is the greatest lifesaver since consolidation for those deeply in debt...or if it's simply another way to part the fool from his (or her) money.


Where to begin...

Well, for starters, getting information on the DMC is complicated. You must do three things:

Fill out, sign and send in their form;

Enclose a copy of a bill or your drivers' license with that form;

Make a phone call (to North Hollywood, California)
after sending your bill and signed form.
(You have to wait before calling, too,
depending on how you sent the form - fax or snail
mail.


All this just for some information? Yes indeed. They say this procedure protects the club and prevents copycat problems.

Okay...you've decided it can't hurt...you sign and send in your forms, wait the specified length of time and call.

What business are you connecting to?


The DMC is located at - and apparently run out of - the offices of The Fair Tax/The One Percent Tax. The Fair Tax is a political organization; president Boris Isaacson is also president (and primary contact) for the DMC. In addition, Isaacson is a NORFED distributor. NORFED is the acronym for the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code. (For more information, click here.)

The group is under investigation for possibly fraudulent activities. The fact that Isaacson's a distributor may or may not have anything to do with the DMC.

As for the One Percent Tax, it's listed in the California phone book as a real-estate loan company.


Confused?
Does this sound odd?
Let's continue...


Every good sales pitch has a testimonial or two, and the DMC's literature is no exception...there's at least two pages' worth. Some appear handwritten, others look like they were typed on a good old-fashioned typewriter, and there's at least one written on a computer.

And yet, not one of these letters has either a first or last name for its writer.
(Emphasis and comments, where added, are mine.)

"WG #760-pd $260.00 "Sir or Madame or To Whom I...
"I highly recommend the Debt Management Club. With due diligence and patience and following their instructions they honestly do get your bills paid. With minimal effort and expense everyone can succeed at their bill-paying goals. This is not to say that results can be expected overnight, but within a reasonable amount of time one can expect good results..."
[What? This just repeats the same thing - in different ways - over and over. Looks like someone needs some remedial writing classes...]

"AP #1156-pd $365.00
"...I have only been a member for a few months, yet I have seen my account grow to an impressive figure to help me pay off my bills....Everyone I have recruited into the Club is enthusiastic about the program, and, with a minimum of effort, have started making it work for them."
[Account? Neither the literature nor websites say anything about setting up an account - they'll just pay your bills, no questions asked. And what's the business about recruiting?]

"EN #664-pd $5335.00
"...I have been a member of the Debt Management Club since September 1997 and in that period the DMC program has paid off more than $5,000 of my debts. The program works well.
"In my dealings with Boris Isaacson and others of the staff of DMC in respect of my account and other matters, they have always been very friendly, courteous and prompt..."

"VS #587-pd $4370.00
"...To my surprise, you told me that the Better Business Bureau have questioned you about your membership. The standards you have shown myself and others would prove there is no doubt that you and your company represents an honesty that other companies should have.
"Thank you for helping me, and giving me the assurance that I know my bills will be paid as the money grows in my account."