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Important Information Regarding Settlement Companies


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7 replies to this topic

#1 CML1

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Posted 17 June 2010 - 11:00 PM

I hear over and over again of people going to companies and getting hurt because they were not with the correct company. I will address all of these issues below and what you need to look for.

A majority of the debt settlement companies out there are not law firms and do not have attorneys that see your program the whole way through. Many will claim that they are an "attorney based program", in which they pay an attorney to review your application and approve it but that is it, after that there is no attorney representation for you in the event you get sued. This is one of the major questions you need to be concerned with and need to ask. If you get sued depending on your state the creditors will be going after a garnishment of wages, lien on your property or a judgment against you.

Next main concern is creditor calls. What you need to realize is these creditors do have the right to call you. Now there are companies out there that will send a seize and desist order to stop the calls. What you need to realize is if you were the creditor calling this person to collect on the debt, and received a seize and desist letter to stop calling and you couldn’t communicate with that person then what would you do? Hmmm… Probably file a lawsuit and take that person to court, so now your back to the first concern.

Another concern you need to have is what is reported in your credit report. Would you rather have “settled, settled for less then owed, or paid up less then owed”, or “paid to a zero balance”.

So if debt settlement is the option that you want to take, then what should you do as these 2 concerns address 99% of the companies out there. Well the solution is look for that 1%.

Ask the proper questions. If the question isn’t directly answered with a yes or no then they are probably hiding something. There are companies out there that do operate this industry the right way. I have seen 2 companies that are law firms and they will have an attorney appear in court with you to represent you if you get sued and fight for a debt dismissal. They also monitor your phone calls with you and make sure that the creditors are following the Fair Debt Collections Practices Act (FDCPA) if in violation they would also file a lawsuit against them and get your debts dismissed. They also make sure that it gets reported on your credit report as paid to a zero balance.

Additional things they have, is in house negotiators and bankruptcy services. One of them even has the owners of their company working in the office full time and they also have a weekly radio shows on CBS Radio taking live calls especially in their local community and allowing people to come to their office to assist them.

Make sure you are doing your do diligence and working with the right company so that you are successful.



#2 breeze

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Posted 18 June 2010 - 10:50 AM

Many of the members here are trying to deal with the results of using debt settlement companies. They are for-profit businesses, and much of the payment consumers make goes to the settlement company, not towards the debt. Many card companies will not deal with the settlement companies, preferring to make their deals directly with consumers.

It does nothing for people's credit - they still get charge offs, collectiona, and most of all, lawsuits. They know if the consumer can pay a settlement company, they have money or an income, and most likely are not judgment proof.

#3 CML1

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Posted 18 June 2010 - 11:03 AM

Many of the members here are trying to deal with the results of using debt settlement companies. They are for-profit businesses, and much of the payment consumers make goes to the settlement company, not towards the debt. Many card companies will not deal with the settlement companies, preferring to make their deals directly with consumers.

It does nothing for people's credit - they still get charge offs, collectiona, and most of all, lawsuits. They know if the consumer can pay a settlement company, they have money or an income, and most likely are not judgment proof.


I agree with the majority of your post. They are for-profit as is any business. You can not operate a business without any profits. Now as I said before you need to make sure you are working with the correct company. If you read my whole posting I addressed the concerns that you wrote in there such as collection calls, and lawsuits and it is a beware to make sure you are not getting suckered into those companies that are not watching out for your well being.

#4 breeze

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Posted 18 June 2010 - 11:05 AM

Who do you work for?

#5 CML1

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Posted 18 June 2010 - 11:18 AM

I listen to a local radio show in Dallas on CBS News Radio 1080 AM that actually goes into these concerns and have done my research on that company and they actually have attorneys and will file lawsuits against creditors if they mess up and do protect their clients. I have also done my research on them and found other companies like them.

#6 texasdad

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Posted 19 June 2010 - 05:25 PM

I listen to a local radio show in Dallas on CBS News Radio 1080 AM that actually goes into these concerns and have done my research on that company and they actually have attorneys and will file lawsuits against creditors if they mess up and do protect their clients. I have also done my research on them and found other companies like them.



And how does this answer the question?


Who do you work for?

#7 arameth

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Posted 24 June 2010 - 07:56 PM

I'll bump and repeat the previous questions:

Who do you work for?

With that being said, I would not say that debt settlement companies are not right for some people. But with resources like CB and the folks here who can help, doing settlement on your own is easily within reach for most people.

#8 ridleylaw

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Posted 10 November 2011 - 11:00 AM

1277427409[/url]' post='4212556']
I'll bump and repeat the previous questions:

Who do you work for?

With that being said, I would not say that debt settlement companies are not right for some people. But with resources like CB and the folks here who can help, doing settlement on your own is easily within reach for most people.


In my opinion, most debt settlement companies are predatory scammers, preying on people too frightened to make a good decision. I routinely sue and negotiate with these companies on behalf of my clients, and other NACA members do, as well. The companies charge fees FAR beyond what an attorney would charge for the same service, achieve no better results, leave consumers with lawsuits, judgments and other problems, and walk away with HUGE fees. I would estimate that, in over half of the cases I see, my clients would have been better off filing a chapter 7, losing ALL of their debt,, and, while incurring a BK on their credit report, having no judgments or late pays reporting. In the other half, the client would have been better off saving the money themselves and doing their own negotiation, or paying my fees to negotiate on their behalf, which would have ended up being a fraction of what the Debt settlement piranhas charged them, for better results. Frankly, the jpower of a letter from an attorney's office rather than from a DSA is immeasurable.




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