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 Posted: Sat Mar 03, 2007 12:13 pm Subject: Debt relief USA & Credit Score |
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debt relief USA claim that my current score (640) will drop to 560 during the settlement process (38k of unsecured debt with 5 creditors), and then will go back up to 700s.
I find it very hard to believe, but the lady on the phone told me that she saw it happaning 1000 times.
Is anyone have real experience with credit scores going up after the debt settlement?
Thanks
Andrei
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adobrand
Joined: 29 Sep 2006
Posts: 21
Debtcc Points: 888
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| Posted: Sat Mar 03, 2007 12:43 pm Subject: |
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Their info courtesy of bbb.org.
| Quote: | BBB Reliability Report
The Better Business Bureau®
Serving Metropolitan Dallas
1601 Elm Street, Suite 3838
Dallas, TX 75201
(214) 220-2000
www.dallas.bbb.org
debt relief usa, Inc.
16200 Addison Rd.
#105
Addison, TX 75001
Telephone: (214) 461-0051
Fax: (214) 261-0078
4debtreliefusa.com
The BBB reports on members and non-members. If a company is a member of the BBB, it is stated in this report
BBB Definition:
report - A summary of activity reflected in a company's BBB file. Includes basic business background, BBB membership information, and Bureau complaint activity over the previous three years. Also reports may include any known government actions, advertising issues or other information that results from activity conducted by the BBB.
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Original Business Start Date: December 2004
New Owner Date: December 2004
Principal: Mr. Jim Wojcik, Chief Operation Officer
Customer Contact: Mr. Jim Wojcik, Chief Operation Officer - (214) 461-0051
TOB Classification: Debt Resolution Services
BBB Membership: This company is not a member.
Additional DBA Names
No Debt USA, Inc
Nature Of Business
This company negotiates unsecured debts for their client with a debt settlement with the client's approval.
Customer Experience
Based on BBB files, this company has a satisfactory record
BBB Definition:
satisfactory record - A business identified in our report as satisfactory has, based on Bureau files, been in business for at least one year, and has voluntarily provided the Bureau with all information requested about the business and its product or service. If any complaints have been received about the business, their number has not been considered by the BBB to be extreme, given the nature of the company's business and the volume of business transacted. Complaints are also generally typical of what might be expected for this type of business. A business stated to be satisfactory has not been the subject of any recent law enforcement actions concerning its dealings with the public. If the business has been contacted by the BBB about its advertising or selling claims, it has modified or substantiated its practices to the Bureau's satisfaction. In addition, the BBB has a clear understanding of the company's business, and the business is not in an industry which has raised significant marketplace concerns.
with the Bureau. A satisfactory record
BBB Definition:
satisfactory record - A business identified in our report as satisfactory has, based on Bureau files, been in business for at least one year, and has voluntarily provided the Bureau with all information requested about the business and its product or service. If any complaints have been received about the business, their number has not been considered by the BBB to be extreme, given the nature of the company's business and the volume of business transacted. Complaints are also generally typical of what might be expected for this type of business. A business stated to be satisfactory has not been the subject of any recent law enforcement actions concerning its dealings with the public. If the business has been contacted by the BBB about its advertising or selling claims, it has modified or substantiated its practices to the Bureau's satisfaction. In addition, the BBB has a clear understanding of the company's business, and the business is not in an industry which has raised significant marketplace concerns.
means a company has been in business for at least 12 months, and properly addressed matters referred by the Bureau. The company does not have an unusual volume of complaints, or any government actions involving its marketplace conduct. The Bureau understands and has no concerns about the company's products, services and type of business.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
The Bureau processed a total of 12 complaints about this company in the last 36 months, our standard reporting period. Of the total of 12 complaints closed in 36 months, 10 were closed in the last year.
Billing or Collection Issues
BBB Definition:
Billing or Collection Issues - Claim alleging billing errors, unauthorized charges, or questionable collection practices.
Resolved
BBB Definition:
Resolved - The company resolved the complaint issues.
3 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to the BBB.
Customer Service Issues
BBB Definition:
Service Issues - Claims of alleged delay in completing service, failure to provide promised service, inferior quality of provided service, or damaged merchandise as a result of delivery service.
BBB Definition:
Customer Service Issues - Claims alleging unsatisfactory customer service, including personnel's failure to provide assistance in a timely manner, failure to address or respond to customer dissatisfaction, unavailability for customer support, and/or inappropriate behavior or attitude exhibited by company staff.
Resolved
BBB Definition:
Resolved - The company resolved the complaint issues.
3 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to the BBB.
Refund or Exchange Issues
BBB Definition:
Refund or Exchange Issues - Claim of alleged failure to honor company policy or verbal commitment to provide refunds, exchanges, or credit for products or services.
Resolved
BBB Definition:
Resolved - The company resolved the complaint issues.
3 - Company resolved the complaint issues. The consumer acknowledged acceptance to the BBB.
2 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to the BBB.
Issue Not Defined
Resolved
BBB Definition:
Resolved - The company resolved the complaint issues.
1 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to the BBB.
Additional Telephone Numbers
Additional Phone Numbers
Tel: (800) 431-1238 |
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cajunbulldog
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Joined: 20 Dec 2006
Posts: 4861
Debtcc Points: 37813
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| Posted: Sat Mar 03, 2007 12:52 pm Subject: |
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Doubtful...I'll explain my understanding of debt settlement programs:
You typically pay a fee for the service
Some may send various dispute letters to the creditors
Your accounts go into default (your bills don't get paid for a while)
The company then attempts to settle the debts for a portion (standard seems to be 60-80%) of the original debt
Your credit score tanks, as it now has a late payment history, and accounts not paid in full.
Additionally, some creditors may not settle, but instead persue litigation, giving them a judgement, which:
has a longer SOL to collect on
stays on your credit report
allows for various writs (lien, garnishment, etc...)
You could try to have your score boosted by disputing negative info on your CR when all is said and done, but once verified, it may very well be replaced.
_________________
The only people with whom you should try to get even are those who have helped you.
-John E. Southard
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Morningstar
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Joined: 06 Feb 2007
Posts: 1651
Debtcc Points: 10710
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| Posted: Sat Mar 03, 2007 1:48 pm Subject: |
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Debt settlement shows your credit with R9 rating. This program is often considered to be the last resort before filing bankruptcy. This program will lower the scores by a large margin. You have to show good payment history on other accounts to raise your scores. Don't be reluctant in using this program if this is the only way to pay the debts. At this point, your scores should not be the important concern if you want to pay the debts and become debt free. Later, you can improve your scores by other means.
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Bony
Joined: 22 Oct 2005
Posts: 291
Debtcc Points: 4207
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| Posted: Sat Mar 03, 2007 2:13 pm Subject: Thanks all... |
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You are right Bony, with this amount of debt I souldn't be consern with my score 
I just called Freedom debt relief and talked with them. The guy sounded very convincing... their cut is 15% of settled debt. He assured me that their affilate will work with me after the program to improve my score...
Anywat, at this point in my life, I dont' care anymore what my credit score is, I just want to be debt free.
The main thing right now is to choose reputable company...any suggestions anyone?
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adobrand
Joined: 29 Sep 2006
Posts: 21
Debtcc Points: 888
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| Posted: Sat Mar 03, 2007 2:36 pm Subject: |
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I heard good feedbacks about Freedom point. I also know that companies like Superior debt relief and Forgetadebt is used by many people here. You may try different quotes from the companies and compare the best deals offered. Many settlement companies don't settle the accounts as mentioned in the contract. And they add a point that in case the creditor takes legal actions during the negotiation process, they are not responsible to back your case in the court. Make sure that you are with the right company that assures you positive results.
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ricjil
Joined: 04 Nov 2005
Posts: 225
Debtcc Points: 3537
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| Posted: Sat Mar 03, 2007 2:45 pm Subject: Thanks ricjil!! |
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Thanks for the advice.. I'm currently choosing betweek Freedom and Superior...
Is there any company outthere that will help you out with legal actions too?
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adobrand
Joined: 29 Sep 2006
Posts: 21
Debtcc Points: 888
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| Posted: Sat Mar 03, 2007 6:56 pm Subject: |
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DS will probably drop your score between 70-100 points, but the credit score is something that can be repaired. We dealt with both Freedom and Superior and they have a pretty decent reputation with us, but I've heard some discouraging things about them recently--such as not returning creditor phone calls during important times and others have dropped out of Superior's program. With that being said, I think you may be well served
to at least consult forgetadebt.com because of their reputation with creditors. I'm sure they can help you answer all your questions. Good luck.
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johng
Joined: 16 Jul 2006
Posts: 67
Debtcc Points: 1601
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| Posted: Sat Mar 03, 2007 9:03 pm Subject: thanks |
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Thanks, I will try to contant forgetdent then...
Did anybody else dealt with this company?
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adobrand
Joined: 29 Sep 2006
Posts: 21
Debtcc Points: 888
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| Posted: Thu Apr 03, 2008 11:24 am Subject: Freedom Debt Relief is a Good Choice |
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they're one of the biggest and probably the best. they helped settle my debts, and be sure that you are ready for your credit score to drop (but mine already sucked) but they take care of you.
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debt man
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| Posted: Thu Apr 03, 2008 11:24 am Subject: Freedom Debt Relief is a Good Choice |
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they're one of the biggest and probably the best. they helped settle my debts, and be sure that you are ready for your credit score to drop (but mine already sucked) but they take care of you.
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debt man
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Debtcc Points: 100
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| Posted: Fri Dec 12, 2008 9:14 am Subject: 4debtreliefusa |
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I am totally outraged by this company. I asked a counsellor on the phone if they can start aggressively negotiating my debts to settle ASAP. She told me I had to pay the 10% fee first. I did that and sent my bank statement. Nothing. In the meantime I settled one of the debts myself. Two days ago I got a letter from them stating my debt load increased, which is false. They want an additional $100/month for 36 months, but the whole term was supposed to be 36 months to begin with! So, I am going to take action against this company for their nonaction. They are impossible to reach as well.
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dmm104
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