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Linda · Posted: Tue May 23, 2006 2:26 pm Subject: Scared to death

I just looked up some information on the internet and it talked bad about people whom sign over power of attorney to their debt settlement company.

PLEASE tell me I did not sign over power of attorney to them so they can rob me blind and take advantage of me.

I understood them say they were just my power of attorney to deal with the creditors listed on the paper. I was giving them permission to only do that.

Has anyone else signed over power of attorney to a debt settlement company.?

Posted: Tue May 23, 2006 2:38 pm Subject:

Debt settlement companies ask you to sign a limited power of attorney empowering your funds to act on their behalf. Or, there is a need to develop a counsel relationship with the settlement company. In most of the cases, the credit companies are located outside the state. Your consultant has to work out as per your requirements.

Linda · Posted: Tue May 23, 2006 2:49 pm Subject:

SO, with the limited power of attorney, they can not withdraw anything from my accts without my permission or do any of that illegal mombo jombo business. It just gives them the power to handle my case with them. Is this correct?

Thank you.

Posted: Tue May 23, 2006 3:01 pm Subject:

Hi Linda

While working with the settlement company, a new account is opened where you deposit all your monthly payments. The settlement company negotiates with the credit companies for a reasonable deal which is often time consuming. Once the proposal is accepted by your lenders, the settlement company uses your limited power of attorney to send the funds to the credit companies. Although, the settlement company has your permission to make this transfer, but you should be informed about the latest activities.

Linda · Posted: Tue May 23, 2006 4:16 pm Subject:

So the limited power of attorney does not involve anything other than that acct. Right???

Posted: Tue May 23, 2006 4:24 pm Subject:

Linda

Please allow me to come into this discussion Smile

In my opinion, the settlement companies sign a limited power of attorney for the account included in the program. They don't have rights on any other accounts except for this one. So, it probably answers your questions.

Posted: Tue May 23, 2006 4:43 pm Subject:

you should have a copy of it, what does it say?

Posted: Tue May 23, 2006 5:02 pm Subject:

I am with a debt settlement company and I will sign over my power of attorney in a few weeks. I am making monthly payments to them in a "special" checking account. It does state on the paper work that this is for the settlement process with the creditors. They should inform you when they receive a settlement offer. I know it states on mine that they can do a settlement offer up to fifty percent, anything over they have to have written permission from me. I was comfortable with this fact when I signed upw ith them.

Linda · Posted: Tue May 23, 2006 5:05 pm Subject:

I have misplaced my copy....???????

Posted: Tue May 23, 2006 5:16 pm Subject:

Linda,

Contact your counselor at your debt settlement company, and they should provide you with another copy. How long have you been in the program? I believe they can only use this to settle the accounts with the creditors. I'm sure your counselor will be happy to answer any questions you may have. I understand how worried you can get over this. There is one lender I am afraid is going to sue me before we have a chance to settle the debt. My counselor always gives me good advice though. Feel free to pm me if you just need someone to chat or vent to.

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