Can a licensee participate in a “fair share” program? If so, is prior approval from OFIR required and how are the fees received to be disclosed to the debtors?
Fair share programs are typically utilized by licensees organized under Section 501(c)(3) of the United States Internal Revenue Code and allow the licensee participating in the program to receive remuneration from a creditor for the collection and remittance of a debtor’s funds…. Under the program, the creditor agrees to credit the debtor for a full payment, but only receives a “net payment” from the licensee (Gross – fair share = net). Not all creditors participate in a fair share program and the amount received is usually a percentage (1-3%) of the gross disbursement to the creditor.
