I signed up with a Debt Settlement company back in May 2015. I had a little over $21,000 in credit card debit. I pay a certain amount each month that goes into an ‘account’ to build up money to ‘settle’ with my creditors. For the first 14 months part of that money is a fee to the Debt Settlement Co.
I have settled with 2 creditors so far. I had 6.
It stated in the paperwork I received when I signed up that the creditors would be calling me for, probably, the first 90 days and then they should stop because the Debt Settlement would be working with them. It is now 10 months and I’m still getting harassing phone calls and even received a summons from one of the debt collectors now handling one of the accounts.
I need to know if anyone has experienced this and what I should do. When I contact my Debt Settlement Company I am told not to contact the creditors/debt collectors … less contact the better. I only contact them by mail to tell them they are not allowed to call me at work and that they can only contact me by mail as well. This seems to get them more irrate.
When I contacted my DSC (about the summons) I was told I would receive a packet from them on how to handle it, what letters I need to write, how to word them, etc. Is it me or shouldn’t they be doing this? When I signed up for this program I gave them Power of Attorney.
I just need to get some advice from someone who’s been through this.
I’m just starting out with a debt settlement company so I don’t have the experience yet to help you. However most dsc’s claim they do not give “legal” advice and ultimately you are responsible for responding to any lawsuits so they don’t get a default judgement against you. I am mulling over how much to deal with the dsc and may also try to settle the debts myself. However I like the idea of having a dsc to “lean on” if I get caught in a hard situation.
I have also been with debt settlement since May 2015, and everything is exactly as you have experienced. (The fees to the company, the power of attorney, and so on.
I also got a judgement served to me from the courts, although that was several months ago and there has been nothing further about that – it was Chase that got that judgement.
One thing I did differently is I changed my home phone number. That took care of the calls. Have you considered that? It takes a lot of pressure off not to have the calls. I just let friends and family know the new number –
And I alway send a certified letter with the phrase “Under the Fair Debt Collections Act, I have the right to request that I not be contacted at my place of work”…… they stop calling me at work that way.
The judgement scares me, and the company hasn’t done much about it – debt settlement doesn’t protect you from those legal procedures – I just tell myself that if it comes to court actions, I will then declare bankruptcy. I am fairly judgement proof, as I don’t own any property or a car or have money in the bank so there is a limit as to how they can “hurt” me……..
I have only settled one of my cards – I also have six to settle.
Anyway – what you are experienceing sounds exactly like what I am going through, and so far…….life goes on.
Hopoe this helps a little, don’t worry……