COMPLIANCE NOTICE
Last updated: January 2025
Debt resolution is a regulated industry. Below are important disclosures required by federal and state law.
1. Program Risks
Debt resolution may involve the following risks:
- Credit Impact: Enrolled accounts may become delinquent or charged off, which can negatively affect your credit score.
- Collections: Creditors may continue collection attempts, including phone calls, letters, or potential legal action.
- No Guaranteed Outcomes: Results depend on your creditors and your ability to make consistent program deposits.
2. Fees
Catalyst Financial charges no upfront fees.
Fees are only charged when a debt is successfully negotiated and resolved.
Typical fees range from 15%–25% of enrolled debt, depending on program size and state regulations.
3. Program Duration
Most clients complete programs in 24–48 months, depending on:
- Total enrolled debt
- Monthly contributions
- Creditor cooperation
- Financial hardship changes
4. Tax Implications
Creditors may report forgiven debt over $600 to the IRS using Form 1099-C. This may be considered taxable income.
We recommend consulting a tax professional for personalized advice.
5. Not a Loan
This is not a debt consolidation loan.
You are not borrowing money.
Instead, we negotiate with creditors to reduce owed balances.
6. State Availability
Programs are not available in every state due to regulatory restrictions.
Please contact us to confirm eligibility.
7. No Legal Representation
Catalyst Financial is not a law firm and does not provide legal services.
We may refer clients to licensed attorneys if creditor litigation occurs.
8. Client Responsibilities
Clients must:
- Save consistently each month
- Communicate financial changes promptly
- Respond to requests for documentation
- Approve settlement offers when presented
Failure to maintain savings deposits may impact results.
9. Contact Information
support@catalystfinancial.com
212-555-0147