Regan Report – Fourth Edition
Options for Consumers in CrisisAn Economic Analysis of the Debt Settlement Industry
Fourth Edition - February 16, 2021
The most recent independent “Regan Report” is the fourth in the series overseen by Greg Regan of Hemming Morse LLP. By analyzing the outcomes of 11.4 million individual accounts, the report exemplified how debt settlement serves consumers in financial hardship each day by offering significant and measurable financial benefits.
This latest iteration of the “Regan Report” also quantified the immense benefits debt settlement provides to Americans struggling with unsecured debt by illustrating the significant economic benefit for financially challenged consumers as measured by a cross-section of outcomes including debt reduction, debt reduction per dollar of fees, and ultimately, savings.
- Debt settlement provided, on average, $2.64 in consumer savings for each $1.00 fees assessed.
- Nearly all offered settlements – over 98 percent – resulted in a decrease of the client’s debt that was greater than the accompanying fees.
- The longer a client participated in a debt settlement program, the more savings they see, on average.
- Among those who joined a debt settlement program, three out of four had settled at least one account within the first four to six months after enrollment.
- The average client reduced their total debt at the time of settlement of approximately $30,000 to $35,000 by approximately $9,500 after deducting fees.
Options for Consumers in Crisis
In 2012, the American Fair Credit Council (AFCC) commissioned the first-ever independent analysis of the economic impact of the debt settlement industry on enrolled participants. Since then, the AFCC has commissioned four reports overseen by Greg Regan of Hemming Morse LLP, all of which exemplify the immense benefits of debt settlement for consumers struggling with unsecured debt.
Options for Consumer in Crisis
The following state-specific versions of the recent independent “Regan Report” are a supplement in the series of reports overseen by Greg Regan of Hemming Morse LLP. These iterations exemplify how debt settlement serves consumers in financial hardship each day by offering significant and measurable financial benefits.
Financial Outcomes for Debt Settlement Programs
The American Fair Credit Council (AFCC) commissioned these two reports in 2019 and 2020, both of which were completed by Will S. Dobbie, Professor of Public Policy at Harvard Kennedy School of Government. The reports examine current evidence as well as past research conducted by Greg Regan of Hemming Morse LLP, while concluding that the Regan Report’s results were correct and debt settlement programs offer significant benefits to financially distressed individuals.
Economic Impact Report
The 2019 and 2020 Economic Impact Reports analyze the debt settlement industry’s national and local economic impact. These independent studies, which were commissioned by the AFCC from John Dunham & Associates, demonstrate the overwhelming importance of debt settlement for consumers, the U.S. economy as a whole, and state economies across the nation.