National Debt Relief Blog Part II

 

Continued….

 

So I popped a spam email I use into their system to see what they would send me. In business it is called an Email “Drip System”. It is designed to keep showing up in your email box to remind you of your conversation with them

The first email and what always seems to be in their emails is check out our 15,000 reviews!

Now I’m not saying that the reviews are fake as there is really no way of knowing that but I could not tell you how many times I get calls from companies who say they can help me get 5 star reviews from verified profiles with their computer system bots. When I first got that call that floored me, but hey, it is the digital age.

And these reviews are probably real as most people only make 1 phone call, get the good sales pitch and they are emotionally drained from being overwhelmed with debt so if someone tells you that they can stop the phone calls and save you thousands and the customer doesn’t know or understand what is actually occurring or the future ramifications of what is being done as they are non the wiser. All they know at the moment is someone can help them save thousands which is a wonderful thing.

But if you’re reading my blogs then you’re the type who likes to do some research and not believe everything you read so I applaud that. I can’t count the amount of times I have told a sales person I am not a one call/time close. I need to absorb the new information given to me and then think and make a decision not jump into one on an emotional decision.

So approximately a day or so later I get The 1st email basically says look at all the people that love us. One quote in the email said:

45 years to pay off my debt but with the Debt Reset Program I’m able to pay it off in about 2 years“.

 

Yeah…. I’m going to have to call BS on that one for a few reasons. First is credit cards (or at least all the ones I have seen) will say pay the minimum only and will all be paid off in 28 years and 36 years was the most I have ever seen.

 

The 2nd email came about 3 days later saying what would you do with and extra $6,296 as that’s what they say clients save overall. What I mostly do not like about companies (just a personal feeling on how to conduct business) and of course after the fluff of the email they tell you to call their “Debt Counselors” but in the calls I have made all I observe  see and hear is a sales pitch and I have no skin in the game and don’t care if you work with them I am just pointing out what someone with years of experience hears.

 

The 3rd email approximately 3-4 days after # 2 reminds you to check out how many people like them.

Nothing wrong with that just trying to keep them in your mind and to keep you thinking about making a decision. And email any company would use.

 

NOW..

 

The 4th email is where they in my opinion fall into the same category as CREDIT ASSOCIATES, so let’s look at this one in detail:

Your credit score isn’t quite as important as you’ve been told it is. (THIS IS HOW THEY START IT)

 

If one of your main concerns about enrolling in a debt relief program – which can save you thousands of dollars and years of stress – is potential impact to your credit score, I have some news for you.

 

– Debt relief programs will only impact your credit score temporarily.

– Remaining in debt is much worse for your long-term credit.

– You could waste thousands of dollars on interest charges every year.

– Credit score only matters when you’re trying to take on more debt (a new loan, house, etc.) – but you’re trying to get out!

 

I do not want to attack each line in this as I could have a field day on how they are trying to manipulate you in this one.

And I do not want this to be a sales pitch for me. So Let’s just say credit is the cornerstone of the American economy, so yeah…it’s kind of important since that’s what EVERYONE ASKS you.

It’s now being used for car insurance, military promotion and job promotion, so again I think it is rather important and for them to make that last statement is literally just a flat out lie.

** So one thing I always tell people is if a company has to lie to get you to hire/work with them then how good or comfortable to do you feel about that?

 

So of course they lost me once I received this email and then started to work on this blog.

The 5th email they finally point out that they charge between 18-25% of the debt you owe. Call me crazy but I think that would be something to be discussed at the start and then point out how working with them will affect your credit.

Again…. Kind of important information that should be at least in the first two emails, correct?

So a little detail, if the account has been let go (6 months of no payment) then the account has been charged off. If it hasn’t and you’re looking to just get a company to help lower the interest rates as when you called they said no to you.

 

The final email gives some summary bullet points and I get a bit of a kick how they say in # 7:

  • Transparency is important to us

 

After reading the above I wrote and mentioned sort of points out that to me at least “Transparency” seems to have a different definition to me than it does them.

 

When I look at their “Accreditations” they are all paid memberships so they are not a nonprofit company. And just like with me and my business I will not be a paid member of an organization so I can post their logo and name to make it look like I am here to help a consumer.

 

So as I tell everyone remember “Buyer Beware”, can they help you based on where you are now…. I’m sure they can and if they save you $100 aren’t they complying with the contract? Just like with many scam credit repair companies out there, if they improve your credit from when you started it is a success but would you consider 5 points a success? The legal contract you signed would.

 

BUT

Are they helping you as much as they can? Probably not, after all it’s not your money they are negotiating is it?

 

REMEMBER—  KNOWLEDGE IS POWER!

 

 

Feel free to contact me at wayne@waynethecreditguy.com if you have any questions and PLEASE be as detailed as possible with your situation and ask about my book “The Real World of Credit” to learn A LOT more of how the system works if you are thinking of fixing your own credit.

 

Understanding how the system works is half the job!

 

 

Update to Previous Debt Settlement Blog PART I

UPDATE to the PREVIOUS Debt Settlement Blog PART I

 

So welcome back, I have to tell you I have never received so many phone calls in regards to a blog than this one AND AFTER SOME OF THESE CALLS NEVER REALIZED JUST HOW SLIMEY THESE COMPANIES ARE.

 

So email me with questions and your experiences with companies and their names, I will review the email, make my own call to them to verify the kind of tactics they use and let all who read these know what is done and why they try to do it to you!!!

 

Let’s just dispense with the standard chit chat and talk about what has occurred and been asked of me over these last several weeks. And I will also throw out some specific information and company names along with some of the company’s ways they “explain” the process and what they tell and don’t tell you.

That information will not be coming from me but from people that have emailed me with their stories (keep them coming!),  so if a debt collector reads this if it mentions their company name you can take a leap as I have proof of what was said and it wasn’t me making up stories.

Now that I got that part out of the way, let’s recap and point out the one question you can ask that slaps “Credit Associates” (And most likely others if they say this also) in the face with a bold face lie on TV.

Their commercial says “if you have more than $5,000 in credit card debt you have the right to let us settle that debt for a fraction of what you owe”.

Now they also mention “there’s a secret the credit card companies don’t want you to know”.

So mini recap – Tell them that you have a question first before you explain your situation. What is the right/law/rule that allows you to settle your debt for a fraction of the money owed?

Possible answers:

1) The Fair Credit Report Act (FCRA)

WRONG—- that has NOTHING to do with money you owe or settling it. It is in regards to the reporting and accuracy of information reporting on your credit file.

2) The Fair Credit Billing Act (FCBA)

WRONG—- this is basically to protect people from unfair billing practices regarding billing statements NOT debt settlement.

3) The Equal Credit Opportunity Act (ECOA)

WRONG—- protects consumers from discrimination based on race, color religion, etc.

4) The Fair Debt Collection Practice Act (FDCPA)

WRONG— this deals only with Collection Companies and their practices when trying to collect debt and what they can and cannot do.

 

The above is just a few popular laws that may be quoted and how you can respond to them to see their response and I guarantee you will see them moonwalk backwards and get back to trying to SELL YOU and should be pretty apparent to you that they are.

 

I just recently spoke to a gentleman we will call MIKE, he contacted a company called National Debt Relief. Mike owed $20,000 on a business card he used and had 2 other cards in good standing totaling with the first card $29,000.

He told me the company said they would have to take all 3 cards to help….                           REALLY?

When he asked what they think they could help get it down to they said approximately $21,000.

WOW!  That is sad….. I just had a $70,000 debt a client had and helped get it down to $15,000.

 

INSIDE INFORMATION

What these companies don’t talk about or “forget to verbally disclose to you” but its most likely in the fine print of the contract is what this method would do to his good standing cards is not pay on them for 3-4 months (destroying his current 750+ credit score) .

Here how this works…..

This is basically a game of leverage, if there is too much month at the end of the money and you’re paying on time or going 30 days late every so often then if you think about it what leverage do you have? Why would they lower the rate, you’re paying them and they actually want you to pay for years as look at your statement. It should have how long it will take to pay off and how much money they will make.

Once the money stops coming in and they stop getting paid and you hit the 90 days late part they really start to worry about their business agreement with you so now they are interested in doing a settlement but they don’t tell you how the process works so they hit you with what they call their payback plan or whatever term they use which typically does not benefit you at all.

What you need to understand is you can ask for discounts, now of course someone who deals with these people all the time is better qualified than you. As the companies you’re calling are trained to do this so while yes, you can try to do it yourself and “wing it”. But it does make sense that the more you do this the more you know how each company works behind the scenes.

 

IF the companies brag about being an A rated with the Better Business Bureau (BBB) then you may want to google the ABC investigation of the Better Business Bureau. It shows how they are a paid member and how members get more favorable ratings. The general public thinks this is done for free but it is a ploy, there are statements all over the internet where business owners say the “Sales” reps said we can help you with your rating if you become a member.

Most business owners hate the BBB as they have created the illusion of how they work for the public, but they just leverage their own made up “rating” system with what they think and just recently starting allowing consumers to rate the businesses.

Take me for example, the people who rated me 5 starts on the BBB site told me they and I have their affidavit’s saying so but as our business is filled with slime-balls even though I have 8+ years with NO Complaints and all reviews are 5 stars they rate me a C+?

I’ll keep you up to date as when I have a little time I will be suing them so that will be an interesting blog.

With the holidays coming I should be able to get in at least one more blog in but hoping for two so please email me your stories and experiences and if you need to speak with me my number is on the website.

I promise to give direct and straight advice, I may not be able to help if you do not fit the guidelines I use BUT I will point you in the right direction.

NOTE:

If you email me, then please send me a synopsis of your situation so i can be of more help to answer your questions…    =)

 

Want to learn more about how the world of credit works? Contact me today and get my book in full blown color. No nonsense direct answers and easy to understand.

                              How the “Real world of credit” works. wayne@ waynethecreditguy .com

(NO SPACES as that was done to prevent me getting spammed).

 

And of course if you need some credit work to increase your credit.