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?
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.
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.
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.