Short answer
A dedicated account is the bank account a debt settlement client owns and controls, administered by an independent third-party processor such as Global Holdings, RAM or CFTPay, where program deposits accumulate until a creditor settlement is paid. The FTC Telemarketing Sales Rule requires it for any firm that holds client funds.
Dedicated Account explained
The client deposits a fixed draft on a schedule, the processor holds the money, and when a creditor accepts a settlement the processor releases payment to the creditor and the firm's earned fee. The firm never takes custody of client funds. In a CRM, each client needs a ledger that mirrors the processor: deposits, fees, settlement payments, reversals and a running escrow balance.
Reconciliation between the CRM and the processor is where most operational errors live, which is why integrating the processor's API for account provisioning, draft scheduling and batch reconciliation is usually the largest part of a debt settlement Salesforce build.
How Vantage Point helps: we have integrated Salesforce with Global Holdings for real-time provisioning, draft scheduling, ad-hoc payments and hourly reconciliation, and build transaction ledgers that match the processor.
Frequently asked questions
Who are the main dedicated account processors?
Global Holdings (Global Client Solutions), Reliant Account Management (RAM), CFTPay (now under Priority Commerce) and Forth Pay are the names most US debt settlement firms use.
Can a debt settlement company hold client money itself?
Not under the TSR. Funds must sit in an account the consumer owns and controls at an insured institution, administered by an independent entity, and the consumer may withdraw them at any time without penalty.