The American Association of Debt Arbitration Companies (AADAC) was founded to promote the highest level of ethical practice and standards as it applies to the debt arbitration industry.

Debt arbitration companies are retained and act on behalf of consumers who have experienced one or more qualifying hardships thereby resulting in the inability of the consumer to manage or otherwise sustain their financial obligations.

Debt arbitration companies enter into direct negotiations with the creditors in order to facilitate the repayment of debts. In consideration for their services, debt arbitration companies are generally paid a fee by the consumer.

AADAC Members agree to comply with strict standards set forth by the AADAC Bylaws. AADAC commonly audits its members to ensure compliance standards are being met and to maintain consumer protection during all phases of the debt arbitration process.

AADAC Members must adhere to following fundamental standards:

1) A one time setup fee is not to exceed $299.00 on debts of $9,999.99 or less. On debts of $10,000.00 or more a one time setup fee is not to exceed $399.00.

2) Administrative and/or Enrollment fees must be split 50/50 for a period not to exceed the first six (6) months of the program thereby providing for the immediate accumulation of client funds for purposes of settlement from the very first month of client enrollment.

3) The negotiation process is to begin immediately, after having received a signed contract from the client.

4) Client funds must be maintained by a third party in a FDIC Insured special purposes account established in the clients name with a licensed and insured custodian of record and for the sole purpose of settling debts.

5) A customary Client Support Fee is not to exceed $29.00 per month.

6) Clients must be provided a telephone number for creditors to call thereby reducing or eliminating the potential of creditor calls to the client.

7) A client may only be offered a debt settlement program after the following qualifications have been met:
A) A comprehensive review of the consumer’s debt, including a complete budget analysis, to establish qualification and/or determination that a debt settlement program will provide a viable and affordable option for the consumer.
B) Client must understand the methodology of a debt settlement program so that he/she may make an informed decision.
C) Client must understand all viable remedies available to help resolve unsecured consumer debt which includes the consumer continuing to pay such debt themselves, consolidation, credit card counseling and bankruptcy.