Companies engaged in debt negotiations, debt arbitration, debt settlement or credit settlement do not receive money or evidence thereof from consumers for purposes of managing their debt.  These companies simply negotiate with creditors in an attempt to have creditors agree to accept a reduced balance from debtors as payment in full satisfaction of their debts. 

A Debt Management company is a person that for compensation engages in the business of receiving money, or evidences thereof, in this state or from a resident of this state as agent of a debtor for the purpose of distributing the same to his creditors in payment or partial payment of his obligations.  A Debt Management Company provides many services that may include debt settlement negotiations, including lowering of interest rate or the principal amount.  Unlike debt settlement companies, debt management companies also assist consumers with saving money and/or managing money.  One example of debt management is when a consumer pays the company a monthly payment and the company distributes the payment among the  consumer’s creditors.   DIFI regulates debt management companies under A.R.S. §§ 6-701 through 6-716.