so first i'd like to say I am happy to have found such an informative board. Second, I have spent a long time searching to see if i could find an answer to my question first but did not, so i apologize if this is something you've seen a million times before. Basically it goes like this. I have $18000 of credit card debt which i have not paid on in four months. I have a child and am somtimes the only person bringing in income ($30000 a year). I decided to go with a debt settlement program four months ago on the advice of a friend. I've been paying them and not the creditors. However, after several weeks of searching the internet and reading how i can be sued and have my wages garnished by collection agencies I am at the point of crying myself to sleep everynight. The Debt settlement program says dont worry they are just threatening suit or oh it takes so long to file a suit we'll be settled by then. They are really good about calling me backa nd answering my questions, but, I"ve decided they are slanting the truth on some issues. I want to terminate their services and try to talk to my creditors to pay them back. Im just so upset that i'll loose the money i gave to them and have to start from scratch with no savings to pay the credit card companies, but its gotta be better to settle this all now instead of waiting and getting sued. I just wanted to know if anyone out there has had success with debt settlement programs or if has been entagled with them. thanks you so much in advance for any help you can give me. catherine
What do you have in writing? Are payments actually being made to your creditors? Get an accounting. If you have a contract and payments have not been made to your creditors, you could possibly sue them for breach of contract. CC debt can be renegotiated and you can climb out of the hole. Go to www.naca.net and look up the membership in your state. An attorney could aid you in debt renegotiation or you could contact your creditors on your own. Whatever avenue you opt to pursue, get it in writing.
what i have in writing is that i am paying fees to them and then the balance of my monthly payments are being put into savings which will be used to settle my debt when i have an acceptable amount saved.
Did you receive an written record, a contract, settlement letters, or anything from your creditors that they agreed to this alleged "settlement"?
nothing has been settled yet. all ihave is a contract stating what i will pay the debt settlement program monthly, their mission statement, a list of the accounts they will try to settle, and all their contact info as well as info on ucan. they say they will settle the debts as soon as i have enough saved to offer the credit company.
If nothing has been settled, and your creditors have not agreed to this "program", my recommendation is to stop payment to them and begin to negotiate with your creditors. This doesn't necessarily mean you're out of the money you've paid these people but it depends on how assertive you want to be to recover your money. The good news is you're not only in this and a great many people have been in the same boat. The better news is you could contact your local television station consumer reporter. This is the kind of story that will resonate with a consumer reporter because there are quite a few scams out there. And scamsters hate publicity. Use that to your advantage. Tell your story to the consumer reporter, ask for help in getting your money back. In the meantime, get in touch with an attorney and ask that individual if you have grounds to sue for breach of contract, consumer fraud.....anything. Get in touch with your state consumer affairs office...any state agency...even the AG. Some states have extremely favorable consumer laws and it would be in your best interest to make inquiries regarding your rights under state law. It's your money, be assertive to get it because you worked hard for it. Go to the website I mentioned, a consumer attorney can help you renegotiate debt and that means lower rates. Get everything, from everyone, in writing. What you'll need to do is have the address and contact info for all your creditors, the current interest rate you're paying, your monthly payments due to the creditors. Have copies of your free credit reports for the attorney too. There is no substitute for competent legal advice and follow through with it. You need to do this in a timely manner and not delay. Begin making inquiring calls on Monday and I know this matter can be resolved. It's www.naca.net, the lawyers list their areas of knowledge and it's an easy site to use. Be an assertive consumer, and if it were me, I'd find the local consumer reporter to get the spotlight on this outfit to get my money back. Have the paperwork in logical order. Know your story time-line. Have the "contract"and record of what you paid, an accounting of your credit debt, credit reports and move smartly forward. IF you decide to attempt to renegotiate on your own, record your calls, send a follow-up letter to the individual regarding the call and discuss terms. Get it in writing. Keep a log of people of who you speak to, their extension number, and any info regarding a particular account. This has happened to a lot of folks, and cc are prepared to work with you but if you remember one thing: records are our friends. Keep letters AND envelopes. File. Keep the paperwork organized. This one can be solved and keep everyone posted on your adventures with it. Someone else may learn something new from your experience. Without a doubt, you can do it. <s>
thanks. hopefully i can fix the mess i've made with the cc companies and get it fixed before the send to collection. i appreciate the help!
Get out of the Debt settlement program as soon as possible.. do not give them any more of your hard earned money..Most Major credit card company's will not work with them as as soon as they find out that you are working with one, They will file suit against you.. Unfornunately you willl not be able to get any of the money that you have given the Debt Settlement company back.. They take your money and earn money by letting it collect interest while all of your accounts a falling into major delinquency by not making payments to your creditors.. Sorry to be the bearor of bad news.. Best of luck to you
thats what im planning on doing. i have written a letter saying i am terminating their services and for them to stop debiting my checking account. i am also thinking of letting my other checks cash and getting a new account so they cannot take anymore. Also, i have been very suprised at the cc companies willingness to work with me. of my six cc companies i have already spoken with two of them and am on special programs to pay them back. Now im just looking towards the future
Re: debt settlment scam? need some Get in touch with your bank on Monday and tell them that you want to immediately withdraw debit access to your checking account for this "program." You could set up an electronic PIN for access to your current checking account so this "program" won't be able to withdraw any more funds. That'll help protect your current checking account until you create a new one.
Looks like you have already have an action plan, but I will put in my 2 cents from my experience. RUN away from this debt settlement company. The fees you are paying them are extrodinarily high, and for nothing. YOu can do the exact same thing your self. I was involved with one before I found this board. They ended up being shut down by the federal trade commission and I lost the money that was in my savings account. Keep reading the board, you can do your own settlements. Good luck. katcar
thanks for all the advice. from comming to this board I figured out that i was really getting myself into trouble. Since i posted this I have terminated my contract with the debt settlement company. I fought with them for a few days and they are not givingm e my money back which really upset and depressed me. I did get some back because they were processing this months payment and i cancelled the check got the money out of the bank closed the checking account and started a new one. Also, I have set up payment plans with several of the cc companies i owe money to. So thanks again for the advice. I feel much better now that I am getting htis under control! I know it will be a while before I am back to normal b ut i'll keep checking here for the great advice and tips!
So all they ever actually did was take your money, claim to put it in an "account" that might someday pay a creditor, and then keep it, making no payments?
well this is my fault and believe me i feel like a complete idiot over it. I had to pay the fees upfront. so my first three payments only went to fees. then the rest of my payments went to fees and my account balance to pay off the debt. Fortunately i got smart and cancelled and only lost 3 months of payments. like i said i got the fouth one out of the bank before they could get their hands on it. I have lost $915 over this (amount of my first three payments) and am sick over it. i just keep thinking i could have paid something off with that! But im just trying to pick up the peices and move foward, having learned a valuable lesson.
