Can You Direct Me To a Legit Debt Settlement Company? - Barby
Barby wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, Hey Steve, My husband and I just bought a house and then (of course) I lost my job (salary of $38,000). While I am currently out job searching, I am using my half of the savings to pay my half of the bills. My husband pays the mortgage /utilities/phone/etc. & my responsibilities are gas/groceries/debt. I am paying about $50-$100 above the minimum payment each month (which equates to about $900). So, in my state of panic that we might be in big trouble soon (we owe about $20,000 in credit card debt), I filled out a form and was contacted by Debt RX USA. At first, everything he was saying was exactly what I wanted to hear and he wanted to sign me up immediately. I asked him about their credentials, and he told me they were a division from the government, in the BBB, some other fancy name, and to go to the website. I thanked him & told him I would need some time to talk it over with my husband and he gave me his number to call. Well, I did a google search and found out they are not a part of the BBB, and have a whole plethora of complaints against them. So, I called this guy back and thanked him for his time and told him I was no longer interested. He got a bit assertive with me and stated “you are not in a good position and would be in a lot of trouble and your only other option was bankruptcy ”… Well, I then told him “I wasn’t trying to be rude but thought he was a liar as some of the stuff he told me did not check out.” He got a bit upset, was short with me and then hung up… Well, now I’m scared. Is bankruptcy our only answer? What would be the quickest, safest, most efficient way to get rid of our $20,000 in credit card debt considering our situation? What is the most respectable, legit debt-settlement company that you know of? Barby” Dear Barby, The entire debt settlement industry is under attack right now. What is a skirmish at the moment is going to turn out to be a war. Read “ Debt Settlement Companies in for a World of Hurt in the U.S. ” for more information. If you had the cash on hand to settle your debts for 60% in one lump-sum payment, that might be a good approach for you. But I have serious reservations about the path you are on right now. Without replacing your income you are simply draining your savings slowly without any expectation that it will be sufficient to get you out of debt. What typically happens is that rather than face the situation, people will keep making minimum payments in hopes of a miracle coming along. Before they know it the savings is gone and the problem still exists. It’s a lot like constantly pumping air into a tire with a big leak in it. At some point you are going to become exhausted from pumping and the tire will still go flat. You’ve got to fix the leak and the leak in your case is the missing income. Now, it is possible for you to use the power of law to push the creditors into a debt repayment plan that is based on your current household income, but that involves bankruptcy. Even if you don’t want to go bankrupt, I urge you to make an appointment and go see a local bankruptcy attorney to learn what bankruptcy would mean for you. Most bankruptcy attorneys will meet with you for free to review your situation. I think your radar went off correctly, nobody should ever push you into a debt solution that does not make sense and feel right for you. If the person on the other end of the phone is getting aggressive then that probably indicates they are more frustrated with losing the sale rather than making sure you find the best solution for your situation. Big hug. Steve @GetOutOfDebtGuy Source: Can You Direct Me To a Legit Debt Settlement Company? - Barby Other Related Articles to Read With Debt Rx USA I Have Had a Miserable Time and I Question Their Legitimacy. - Ralph Debt Settlement Companies in for a World of Hurt in the U.S. I Want Bell South and Verizon to Settle My Debts. - Jacinta I’m Doing Debt Settlement and Getting Sued by Chase Bank. - Darlene Consumer Debt Options Threatened: “Consumer are the losers with a debt settlement industry in crisis.” Stumble upon something good? Share it on StumbleUpon Post this to MySpace Share this on Facebook Tweet This! Email this to a friend? Share this on Linkedin Seed this on Newsvine Add this to Google Bookmarks
I Want Bell South and Verizon to Settle My Debts. - Jacinta
Jacinta wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, I am buying a home very soon, may 22, I must payoff two debts from my credit report before I can close, I have a bell south debt (phone company) and time warner debt (cable service) from 2004, I live in NC. these accts are with a collection agency, I have contacted both of these agencies to try and settle and they tell me that neither company settles for less than the debt, bellsouth ($453) time warner ($653), what can I do? Is it possible to get the debt settled for less than the amount? Jacinta” Dear Jacinta, You have no authority or right to force any creditor to accept less than the minimum as a full and final payment of a debt. If the creditor refuses to settle the debt for less, you’ll just have to pay the full amount due to satisfy those two debts. You could always contact the original creditors on those debts and try to settle but my bet is that they will send you back to the collection companies handling it. Worth a try. Steve Big hug. Steve @GetOutOfDebtGuy Source: I Want Bell South and Verizon to Settle My Debts. - Jacinta Other Related Articles to Read I’m Doing Debt Settlement and Getting Sued by Chase Bank. - Darlene Consumer Debt Options Threatened: “Consumer are the losers with a debt settlement industry in crisis.” I Was Not a Compulsive Shopper. I Was a Day Trader. - John Guest Post - Consequences of Debt Settlement I’m in a Debt Settlement Program and I’m Terrified. - Magen Stumble upon something good? Share it on StumbleUpon Post this to MySpace Share this on Facebook Tweet This! Email this to a friend? Share this on Linkedin Seed this on Newsvine Add this to Google Bookmarks
New York Attorney General Announces Nationwide Investigation Into Debt Settlement Industry
Subpoenas Fourteen Debt Settlement Companies and One Law Firm in Connection with Probe Debt Settlement Companies Often Charge Huge Fees for Misleading Plans, Suggest Selling Blood Plasma to Raise Funds, and Leave Consumers in Worse Financial Shape NEW YORK, NY (May 7, 2009) - Attorney General Andrew M. Cuomo today announced a nationwide investigation into the debt settlement industry, subpoenaing fourteen debt settlement companies and one law firm. Companies in the debt settlement industry often prey upon consumers who find themselves unable to keep up with credit card payments during these difficult economic times. “Today, millions of hardworking Americans are finding themselves imprisoned by debt. In response, a rogue industry has stepped in, offering consumers false hope, charging tremendous fees, and leaving them in a worse financial situation,” said Attorney General Cuomo. “Our mission is clear: to hold unscrupulous businesses accountable; to rein in a renegade industry; and to ensure that people are not victimized when faced with financial hardship.” As part of his broad investigation of the debt settlement industry, Cuomo today issued subpoenas to fourteen debt settlement companies and one law firm: American Debt Foundation, Inc.; American Financial Service; Consumer Debt Solutions; Credit Answers, LLC; Debt Remedy Solutions, LLC; Debt Settlement America; Debt Settlement USA; Debtmerica Relief; DMB Financial, LLC; Freedom Debt Relief; New Era Debt Solutions; New Horizons Debt Relief Inc.; Preferred Financial Services, Inc.; U.S. Financial Management Inc. (d.b.a. My Debt Negotiation); and the Allegro Law Firm. The subpoenas include requests designed to uncover the companies’ fee structures, how many people have benefitted from the companies’ services, and what kind of relief the companies are actually providing. Cuomo is also currently investigating Nationwide Asset Services, Inc., based in Phoenix, Arizona, and Credit Solutions of America, Inc., based in Addison, Texas. The debt settlement plans offered by these companies are often inherently flawed and, based upon consumer complaints, it appears that many consumers are being misled regarding the nature of the services offered by these companies. For example, some companies falsely represent that they can reduce consumers’ credit card debt by as much as 75 percent through negotiations with creditors. In addition, the companies often take their fees up front and keep their fees even when they do not provide the promised services. The debt settlement plans are generally premised on consumers aggregating savings, over one to three years, from which both the payment of the company’s fees and any negotiated settlement are to be made. Yet most consumers who are targeted by these companies are unable to meet the savings requirements because of their precarious financial situation. Some of the companies also urge consumers to seek additional sources of funds through means such as selling their blood plasma, mowing lawns, cutting down on car insurance, and borrowing from their neighbors and church. Even for those consumers who can meet the requirements set out by a plan, their amount of aggregated savings is ordinarily insufficient to settle their debts. As a result, many consumers find themselves worse off financially because of these debt settlement plans. Many consumers may benefit more from working directly with their creditors, seeking credit counseling , or consulting an attorney about filing for bankruptcy . Additionally, even when enrolled in a debt settlement plan, consumers are often still subjected to collection efforts and lawsuits filed by their creditors. Consumers are even told not to discuss their debt situation with creditors. Attorney General Cuomo has actively pursued unscrupulous companies and individuals that have attempted to take advantage of people who are experiencing personal financial problems during these trying economic times. On April 14, 2009, the Attorney General arrested the owner of Long Island-based American Legal Process for allegedly providing “sewer service” to thousands of New Yorkers owing debt. According to the Attorney General’s criminal complaint and civil suit, this company failed to properly notify individuals that they faced debt-related lawsuits. As a result, individuals would unknowingly default and have judgments entered against them, without the chance to defend themselves. Consumers who believe they are being defrauded by a debt settlement company are urged to contact the Attorney General’s office at 800-771-7755 or www.oag.state.ny.us. The Attorney General’s investigation of the debt settlement industry is being spearheaded by the Bureau of Consumer Frauds and Protection in New York City and several of the Attorney General’s Regional Offices across the state, under the supervision of Consumer Frauds Bureau Chief Joy Feigenbaum and Deputy Attorney General for Regional Affairs David Sampson. The following are some helpful information tips for consumers faced with significant credit card debt: Be wary of debt settlement companies which falsely promise to obtain substantial lump sum debt reduction settlements. Many advertise “reduce debt now,” and claim as much as 50% to 75% off credit card debt, but rarely obtain advertised reductions. Never agree to sign a contract with a debt settlement company that requires payment in advance prior to obtaining the promised debt reduction. Enrollment in debt settlement plans may not stop creditors from bringing collection law suits, or prevent enrolled accounts from growing larger by the addition of late fees, interest, and penalties. Also, credit reports will reflect derogatory information, including assessed late charges and non-payment of debt, and consequently credit scores will be adversely affected. Creditors are under no legal obligation to accept a settlement offer for less than the outstanding balance owed. Only a small number of consumers who enroll in debt settlement plans have the financial means to complete them. Usually, they drop out after having paid service fees to the companies with no settlements. Enrollment in a debt settlement plan premised on stopping payments to creditors will likely lead to more frequent and aggressive creditor collection efforts often resulting in judgments, wage garnishments, and freezing of bank accounts. Check with the Better Business Bureau to obtain a Reliability Report on a particular debt settlement company and its rating. A wise first step to help resolve an outstanding account is to speak directly to the credit card issuer. Alternatively, it may be helpful to speak to an attorney or an accredited credit counselor who can help develop a plan of action that best works for each consumer’s unique situation. Steve @GetOutOfDebtGuy Source: New York Attorney General Announces Nationwide Investigation Into Debt Settlement Industry Other Related Articles to Read Consumer Debt Options Threatened: “Consumer are the losers with a debt settlement industry in crisis.” Fourteen Questions to Ask Any Debt Settlement Agency Should We Use Freedom Debt Relief or an Attorney to Help Us With Debt Settlement? - Debbie Stumble upon something good? Share it on StumbleUpon Post this to MySpace Share this on Facebook Tweet This! Email this to a friend? Share this on Linkedin Seed this on Newsvine Add this to Google Bookmarks
