Re: Debt Negotation Companies

Posted by In debt and stressed. (65.82.14.140) on March 20, 2003 at 13:58:57:

In Reply to: Debt Negotation Companies posted by Ripped Off on March 19, 2003 at 17:48:02:

I enrolled in a Debt Negotiation program. I must admit, that I had a few settlements which were less than 50%. During enrollment, they did mention a program fee which was over $1,000 (based on the amount owed), but they failed to let me know that they would not begin negotiations until all of their fees was paid. For months, I was depositing money into the account with them, thinking that I had enough for a settlement, but they made sure their's was collected first. What they fail to emphasis too is that they also charge clients 25% of the balance saved. For example if your balance on a card is 10,000, and the creditor agree to settle for 3,000, the negotiation service would not settle unless you have had least$4,500 in their account. That is to ensure that they take their $1,750 (25% of $7,000) before paying the $3,000. In addition there is the monthly maintenance fee. They are all in it for the money. However, that did not stop one creditor from filing suit against me. Of course, all my additonal money has been placed in the program, and I can't even hire a lawyer. They promised to take care of such problems, but never did. Technically, these programs saves you in the long run because you get out of debt years earlier, and for less. However, I think they are dishonest in not disclosing all the fees they charge. Also, I wonder if it is not criminal for them to be paying themselves before rendering services?

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