There are numerous ways that an individual or family can be involved with this illegal practice. Typically, it began as word-of-mouth advertising in conjunction with a nearby property agent. The goal was to sign new customers up in a growing market and make a profit on their "franchises." Quite simply, people were coming for them for help getting out from under an excessive debt load and expecting that the agent sold them a "rip off" when they really bought a mortgage from the Net Branch Company.
Another way Net Branch Companies came into being was by purchasing loans originated by financial institutions in a poor economy. They would then convince these loan originators to market loans that have been already due, alongside balloon payments and many different other legal clauses that made the resulting loans very unprofitable for the loan originator. The banks that gave Netbranch loans would sometimes not have had the foresight to stop and think of whether the loans were worth it. Consequently, many banks and mortgage companies were ready to accompany Net Branches because they would make more money that way.
Some mortgage loan originators were upset with the Netbranch approach and sued several Netbranch companies, claiming that these were not adequately disclosing the expenses connected with Netbranch services. Eventually the United States Justice Department stepped in and sued several Netbranch companies. In the suits the Netbranch companies were found to have violated the FDCPA. Whilst the Netbranch companies were sued, Net Branches continue to use as normal.
Even with Net Branch services, there are some Net Branches that don't provide any loan origination services. Often this starts when a Net Branch starts to take a client that is already enrolled in a Net Branch program and starts to send Netbranch sales pitches to them. Because Net Branches aren't required to provide financial training to new clients, Net Branches will often take a business by surprise. If you should be trying to take up a Net Branch or improve the Netbranch services you currently offer, contact me to go over how I will help.