I purchased the Bill Bartmann In Home Debt Buying Workshop for 3K and completed the home study course. Afterward, I joined the Phoenix Group, which included a business plan, assistance in joining the American Collectors Association, debt broker registration, and securing a portfolio. I purchased a 276K portfolio for 21K and place the portfolio with CFS II (Bill Bartmann's collection agency).
The first month of the collection period is a quiet period and collections begin on the second month. The Phoenix Group charges $1875 per month for their services, which is limited after the portfolio is placed into collections. The results of three months of actual collections has failed to covered the Phoenix Group's $1875 per month fee. After paying the Phoenix Group for 5 months and experiencing abysmal collection results from CFS II, I asked the Phoenix Group to restructure their fee to be based on a percentage of the collection results. The Phoenix Group refused to entertain my offer and we have agreed to part company. I will place my portfolio with another collection agency, which will alleviate the Phoenix Group's monthly fee and will hopefully recoup some of my investment.
The Phoenix Group business model is broken. They get paid regardless of how well the portfolio performs. Their monthly fees are exorbitant based on the amount of work they do after the portfolio is placed with a collection agency. Their recommended solution to their exorbitant fees is to purchase additional portfolios and spread the costs over several portfolio.
While this might work in theory, CFS II collection results do not warrant spending additional money and going further into debt. If the Phoenix Group does not change its fee structure, then it is a losing proposition for the investor.
I would recommend staying away until Bill Bartmann and the Phoenix Group change their rate structure to coincide with collection results.
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