Debt Settlement Fees
Date: Wed, 04/16/2008 - 15:11
Get it in writing, if they are offering you a payment arrangemen
Get it in writing, if they are offering you a payment arrangement over a period of time, they should have no problem putting it in writing.
The two most prominent structure of payment used in the debt set
The two most prominent structure of payment used in the debt settlement industry are:
The contingency fee structure and the front-loaded fee structure.
Under contingency fee structure, the following fees are normally charged form the client.
Administrative charges
Negotiation fee( a percentage of the amount saved in the negotiation, normally 25% of the accounts settled)
Monthly service charges ( the amount charged by the firm to manage your account, it can be anything between $30 to $80 per month)
However, it seems that you are under the front-loaded fee structure, which has the following break-up of the fees.
A flat percentage of the debt (normally it ranges between 12% to 16% of the debt)
Monthly maintenance fee
And, miscellaneously charges.
Hope the inputs help.
Hi mary, I too am struggling through the same problem. I have en
Hi mary, I too am struggling through the same problem. I have enrolled myself with a settlement firm and is paying the following charges.
Monthly service charges=$50
One time creditors enrollment fee=$100 each creditor upto the first five creditors and $50 for each creditor more than five.
Miscellaneous and/or NSF fees=$30
They also charge 20% of the money saved during the negotiation with the lenders.
[color=DarkRed][size=2]*company name deleted as per the forums rules-Jason[/color][/size]
I had same struggle 2 months ago. I did not have enough money to
I had same struggle 2 months ago. I did not have enough money to pay monthly minimums on CC's so I was behind payments. Phones were already ringing off the hook and settlement companies I talked asked 15% to 11% up front before settling any account. I am sure they want their money first because my credit is in the tank. I have & had high balance on 11 acounts-25K to 7k. I think high balance accounts will be likely lawsuit candidates.
I had my 3 big account settled pre-charge-off (before 180 day past due) in last March (67K total)-Chase acount was on the way to litigation on only 4 month past due!! I am using James Lombardo. He charged me $500 retaing fee 2month ago then I pay him 20% of savings as he settles accounts. No monthly fees nor enrollment fees of any kind I paid him so far. He can be great help if you are looking for quick settlement before charge off( 6month past due).
[color=DarkRed][size=2]*company name and link deleted as per the forum rules-Jason[/color][/size]
