The Truth of Credit

Today I would like to discuss my scorn for the Debt Settlement Industry. As the end of the month nears I’m trying to collect as much money as possible and it seems every month I run into a Debt Settlement Company that is impossible to get a hold of. I want to share this for all of you who might be considering one of companies and show how “helpful” they are to you. So here is the situation:

Debtor owes $7,648.50

1st contact: 6/07/08- I get a receptionist, states that she will fax me a Power of Attorney(POA) and take a message for the Negotiator I will be working with. Ok, no big deal that’s common practice.

2nd contact: 6/09/08- No POA still. However, I see that the debtor had given us permission to speak to them in previous notes. So I call finally get ahold of Raul, the debt settlement negotiator for the account on the phone. I explain who I am and who I represent. I offer to settle the account at 50% right away which can be broken out over the year as long as there is a down payment of $800 up front. He counters at $3,700 which is below what I can personally accept. I tell him I will have to submit some paperwork but I’m sure I can make a deal especially with the down payment being offered this month. Here is how the deal shook out:

Settlement 48% of Legal Balance Owed:

$800 Down w/ Payments of $263 for the following 11 months = $3,700

(Awesome Deal for the Debtor)

So again I explain that I need a POA and he agrees to fax it ASAP.

3rd contact: 06/11/08- After getting the deal approved, I call to get a fax number to send the settlement letter. I get a receptionist who gives me a bogus fax number which won’t go through. Great!

4th contact: 6/20/08- Speak to yet another receptionist she tells me “Good Luck” trying to reach Raul directly since it’s the end of the month (how professional).

5th contact: 6/21/08- Amazingly enough I got Raul on the phone explained again who I was. He asked me to hold on one second and then hung up!

The TRUTH is that I get hung up on all the time so it no longer effects me. But the hang ups are usually from debtors, these are professional debt negotiators! The deal we worked out is now null and void and the best part is I can still contact the debtor because I still have no POA from the debt settlement company. Moral of the story is simple; save your money. I would easily give you the same deal I gave them and you would save yourself the ridiculous fees that you are paying them.

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