Debt Settlement, now I am really confused

Read my comments on the next thread. I am very happy with Halo debt solutions.

Why do people keep signing up with debt settlement companies that have hundreds of client complaints on file?

I don't know why people do it in this day of age. Before I signed with the company I went with, I checked BBB, this site, and googled their name. You always hear the horror stories about people getting ripped off for their hard earned cash.

Sometimes it's REALLY cheaper to do it yourself. I know it may be very frustrating, but, at least you know its getting done...because YOU are the one doing it.

I am with Sifxpert over 2 month now. I am happy with what he has done for me so far. Sifxpert is run by James Lombardo.

[color=DarkRed][size=2]*websire address deleted as per the forums rules-Jason[/color][/size]

Hi scottinred, you may had a wonderful experience with sifxpert, but you may also hear form many who hadn't. Hence, avoid promoting the commercial sites in the forums.

Its important that we maintain the non-commercial image of this community and share our experiences without violating the forums guidelines .

Mtoth, search about the company on the BBB site. It'll give you the fair idea about their status and reputation. You can then decide things accordingly.

I guess everyone needs to do what's best for THEMSELVES. Thanks for the details,SCOT. I've been looking into different comopanies...some of the fees, I have 'encountered' are pretty high. But..I'll keep looking.

I'm doing my own debt settlement and I'm currently 120 days late and have settled with one creditor with 4 to go - they are all talking settlement with me, but not low enough yet; I want 40%-50% - they would like 60% - I'll just wait it out.

If you have a true hardship and you just tell them you can't make the payments; they will keep calling; talk to them monthly, save your money and when you have enough, settle the account. The same thing a negotiator will do.

Debtcc offers a non-commercial platform to the members to share their financial issues and interact amongst themselves to solve those out.

But debtcc strictly restrict any use of the board for commercial purposes. Hence all the members are requested to avoid promotional activities in the forums and reply to the posts staying within the rules set by the administrators of the forums.

Regards,
Jason

OK, Jason. 'We' understand. Thanks for the post. I know we can post about our experiences, but not 'advertise'. Makes sense. GUEST- you had some GOOD advice...just save until you can settle debts.

I agree 100%. Search just debtcc alone and you will find so much info about all the companies listed above. That was all I needed to make my decision. I chose not to use any of them. I have read some success stories with some but read more negatives than positives.

I considered doing DS on my own so my husband and I stopped paying every CC officially in January. Well, times got even worse and we are now unable to save to settle. Creditors keep calling-we don't pick up anymore. Suprisingly we are starting to get settlement offers in the mail from these creditors. Unfortunately because of our finances and debt load-we have no other choice but to file BK but if I had the funds to do it...Settlement is a great option!

It can be done on your own if you have the funds to do it. It takes time and a whole lotta patience.

Has any one heard of or had any experience in dealing with Allegro Law, LLC. 223 Wall Street #201, Huntington, NY, 11743.
Please let me know A.S.A.P.
Thanks, J.Barrio

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drobinson
I think you have the wrong website. This is a fourm to help people with debt issues.Tell us a little about the deposit and maybe someone can guide you to the right site.

While Allegro appears to be legit, they are extremely shady. They are NOT a law firm. Basically, I did the math and a miniscule amount of my monthly payments would be going in escrow for the first 18 months. You are essentially paying them upfront thousands of dollars to perform a service you can do yourself, and get started underway much quicker (with the money you save on their fees). Remember, if your creditor sues you, Allegro cannot represent you in court - you need to hire counsel anyway. They also told me they would refund my first escrow deposit but that turned out not to be the case. I am disputing the payment through my bank. I do not recommend this company.

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I'm with Superior; I had just too big of a problem to deal with my mess on my own. I investigated them on the BBB first before I signed up, and they do have some negatives, but most complaints have been resolved. That is an important statistic. Their BBB rating is pretty high. Also, one has to keep in mind the emotional and frustrated state people are in when they make complaints - especially with debt problems - it is easy to panic and assume you're not being helped properly when it seems like the world is crashing down around you. I am still comfortable with them, even after hearing some negative remarks, because each case is different and debt settlements take TIME and strong nerves.

Allegro Law is law firm. Keith Nelms Esquire is the lead attorney. If you asked for credentials you would have received them. Apparently you don't read contracts before you sign them. That is, if you're a real client. Also, debt settlement helps prevent lawsuits. With Allegro you're not hiring litigation attorneys, you are hiring negotiation attorneys. Also, if you can do this yourself, you should teach the people with garnished wages they can do it themselves. Settling a debt for $500 is much different than settling debts for $50,000.

Whatever you do do not sign on with James Lombardo he used to run a company called American Liberty Financial out of Florida operating out of Irvine, CA. He did mostly wholesale debt settlement with this company, meaning he negotiated on overflow accounts from other debt settlement companies, leaving many client to rot and get sued by their creditors or junk debt buyers such as LVNV. How do i know all this, I worked for one of the so called legit and very clean with a spotless BBB rating called CuraDebt out of San Diego, CA. I used to fix what this mans company never did which was not negotiate on clients behalf. This guy had some sort of scam going on with Wolpoff and Abramson, the arbitration king where he used to get really great settlements on MBNA. As for CuraDebt out of San Diego, they are no better than James Lombardo, nicely kept BBB rating at their clients expense. Do not always trust BBB ratings, they are not what they seem.. If you want to learnmore about james Lombardo just do a goole search and you will find out some horro stories!

Cab anyone give me more information about Allegro Law LLC? Is this company reliable has anyone experience a success story. Is urgent for me to know Please any information will be helpful.

Is this company reliable? NO......not even a little.

Is it me or does it seem like every debt settlement company have a track record of complaints.

I believe bad companies to good are 10 to 1. Don't quote me but it's something like that. You have to really investigate these days.

There's so many negative postings about hundreds of debt settlement companies. I do my research and just when I think I found a good one, I'll find something negative. Does anyone have a debt settlement company with a good reputation for doing what they claim and actually helping the consumer out of debt; handles collection calls and letters; and helps to prevent wage garnishments and lawsuits?

You stated " handles collection calls and letters; and helps to prevent wage garnishments and lawsuits?"

None of them do this or are ABLE to do this. They can't stop anything.....sorry jalenaf.

Find a local consumer lawyer in your area and consult with him. Or go with a credit counseling service. THIS IS THE BEST WAY.

I also had the problem with settling and saving the money to settle with. If I could have done it on my own i would have i just could not disapline myself enough, and I worked to hard to have to deal with the harrassing creditors. Thats why I went through a company some one to hold me accountable for that money. It was withdrawn from my checking every single month and put into a different account. But after reading this site im finding more and more companies that are scamming people and its very very sad that people would take advantage of people in there most time of need. Some how I found a good company without alot of research, but I have told people alot lately to research, research and research again to be sure that the company is a good one. But if you can do this on your own, Go for it and good luck!

how do you know what to do? i am confused. researched companies but how do you know which one. i found a company on the bbb and i came here to therir site and everyone is posting about other companies. i thought this was a sight for the 1800 on the right but no one is mentioning their name. new to this.

the reason why you are not getting names is because we are not allowed to recommend in the posts. But here is what you should know i hope it helps.

1. It is not uncommon for settlement companies to have a few complaints. Here is why the nature of the business most people dont know what they are getting into before they get started and just jump in and are angry when something happens knowthe facts about debt settlement is your first priority to be sure you can handle what will happen the next year or two.

On my blog you can check out 10 questions to find out when finding a settlement company. These questions are good to start you out The settlement company should be able to answer this with ease through thier website or on the phone. This is very important.

third, if all the answers are good to you about them, come to this forum and find out about people who has used that particular company and how it worked for them.

The idea that all debt settlement companies are bad is wrong. There are many companies out there that work well i know from experience. But there is alot of people that take advantage of people in need and this is what you want to avoid. Every company does things differently and choosing one that fits your needs is what your looking for. for example some make you save the money on your own with a savings account you have access to, can you do this or will you spend the money? some have very large upfront fees can you afford that right now, or do you need a company that takes out the fees as you go? are thier fees reasonable. It should take you some time to find the perfect company that meets your needs. Make sure you take the time the debt isnt going away and if you choose the wrong one, you are going to make your situation even worse.

You could settle the debt on your own but if you choose to hire a company to assist you I suggest checking to make sure they are members of TASC. Also make sure to check them out with the BBB to make sure they don't have an unusual pattern of complaints and that all complaints were resolved. Unfortunately the BBB dislikes the debt settlement industry pretty much as a whole so don't be shocked when you see some good companies that have C- ratings or lower because the highest ranking a company can get is a C.

I BEEN WITH THEM FOR ABOUT 7MONTHS PAYING 240 A MO.THEY CHECK MY ESCROW AND SAID I HAVE 200 DOLLARS, HOW CAN THAT BE WHEN I THOUGH THEIR FEE WAS 59.00 A MONTH.WHAT DO YOU DO.
CC

@CC

Cut your losses and move on. Get a CREDIBLE credit counselor in your LOCAL area to help you out. And if you can pay $240 a month you don't need them anyway. Pay that directly to your creditors and cut the middle man (scam) out. Think about it, that's $1680.00 that could have gone to paying off your debts.

there are many reasons why one may choose a company over doing it on thier own, for starters do they work during normal business hours? are they working more than 10 hours a day? do they have small children at home when they are trying to deal and negotiate these issues with the creditors. Are they emotionally stable enough to deal with these creditors on thier own? Are they aware of the laws of what the creditors can and cannot do, Doing it yourself is definitely cheaper, but in my situation it was not worth my sanity. I worked 60 plus hours a week and had a new born at home. I was stressed as it was without having someone call and threaten to put me in jail and take my home. Alot of people can deal with this, I personally could not. Alot of people suggest doing it on thier own, but alot of people are like me were its just not that easy. At the time i could not save a dime. I needed someone to be accountable to. Someone to be sure i was saving X amount of dollars every month.

HAS ANYONE HEARD ANYTHING ABOUT THIS COMPANY RESQDEBT. IF SO PLEASE TELL. I'M THINKING ABOUT GOING WITH THEM.

There are many posts about resqdebt on this forum all you need to do is search around a little bit. I myself have not used this company so i cant say one way or another. But check around i know there is alot of posts about this.

As of 2005 a new bankruptcy reform was enacted, which makes filing for a Chapter 7 bankruptcy much harder for the majority of debtors. Which in turn severely limited the number of options available to debtors to get debt relief. The industry which has seen the biggest spike in business due to the bankruptcy reform is the debt settlement industry.

Debt settlement is a form of debt reduction in which a debtor can look to save a substantial amount on what their debt balances are by reducing the balance itself. Needless to say it is a much more attractive method of debt relief than filing for bankruptcy be it Chapter 7 or 13. So after the change in law was complete a lot more debt settlement companies have been popping up than there were previously. Just as with most industries there are companies that can do a very good job and some that cannot. Usually the ones that cannot are more in it for themselves, than to really help out people in debt. In this article I would like to briefly go over some of the points to consider if you are looking to hire a debt settlement company to help you with your debt situation.

Right off the bat one of the first things to look for is to make sure the company is registered with the BBB and has a decent rating. By signing up with the BBB the company is putting themselves out there. Meaning the potential negative consequences they could have if they accrue to many complaints against the BBB, which looks pretty negative for potential clients to see.

Another very big thing to consider is how the company charges their fees. The vast majority of companies will charge their entire fee up front before the first settlement is ever made. This is much more beneficial to the company rather than the client. While it is understandable that the company should charge a portion of their fee up front before settling because there are expenses for a company to operate effectively, they should never charge the entire fee up front. A client friendly company will charge a portion of their fee up front and then the remaining portion of their fee should be collected after they settle. And the fee should operate in part by contingency, meaning by how well they perform. A contingent fee is a fee which is based upon a percentage of the money that is saved. So the better a company can get for a settlement the more money a client will save and the more money the company will earn, resulting in a win-win situation. This type of fee structure ensures the company will look to get the best possible settlement for a client.

One often overlooked aspect of settlement is the relationship the client will have with their client services. Nobody likes to call a company to get an answer to a question they have only to either have no one pick up the phone, or have to deal with a new person every time they call and have to explain their situation over and over again. In settlement the client should have the contact information to get in touch with the specific negotiator handling their case, someone who knows them and their situation. This is critical for the clients overall peace of mind throughout the settlement process.

Here's a little tip to figure out whether a company is very client friendly or not. The unfriendly companies will have within their contracts a cancellation charge. Many companies put in writing that after you enroll you will only have 2-3 days to cancel. And that if you cancel after that they will charge you X amount of dollars depending on the company. If you see this in a contract run away, this company is in it only to make money and not help people out.

One more thing that is again often overlooked is whether or not a client can miss a payment. Some companies will not allow this and will kick a client off of the program. Most people who are enrolling into settlement have at some point experienced financial hardship and it is possible it may happen again. Which sometimes can result in a client needing the money they set aside for settlement, for something else. While this is not a recommended habit to get into if you are trying to get out of debt, sometimes it must happen. A company should be understanding if a month or two goes by and you cannot make a payment, after all the reason you hired the company in the first place is to help you through this financial hardship not make it harder upon you, the client.

My goal with this article is to help individuals looking for debt settlement make a more educated decision on the company in which they hire. I hope the points illustrated above will help people find the right choice and become debt free. I will monitor the progress of this article and if anyone has any questions feel free to post it in the comment section of EzineArticles, which is where this article will be hosted. Thank You.

thanks for the informed post on settlement. I think its very important that people are informed on settlement before joining a program or starting a settlement program. Its far from easy, but most of us know personally that sometimes its the only way out! outside of bk, which is harder to file these days and worse for your credit in the long run

How is Allegro shady they have a B+ rating with the BBB, while most debt companies have an F. They are indeed a law firm with a network of attorneys in every state. Every atty is listed on their website too and you can verify them with each state's Bar Association. Also, you are mistaken, its not that Allegro will not represent you should your creditors take you to court, its that its not included in their fee, but a lawyer in your state in the Allego network will represent you for a reduced fee of approx $350. The reason for the extra fee is more than 80% of time, creditors will not sue, because in most cases its not cost-effective for them to do so. Also, Allegro will even let you pay the fee out of your account, so as long as you haven't depleted it with a recent settlement, there should be little to no out of pocket for you.

Quote "The reason for the extra fee is more than 80% of time, creditors will not sue, because in most cases its not cost-effective for them to do so."

This statement alone is SO very false. The original debtee will sell your debt to a collection agency for a profit while they write off the debt as a loss and get more money. Then the Collection agency will try to sue the pants of you while trying to steal your shirt and swipe your food in the process. This happens 100% of the time. It's BIG business.

They actually reuined my credit pretty bad, most especially my FICO score. I was current with my debts and they told they would be able to help me consolidate all my debts. But because of their really bad services, I ended up being behind for almost 3 months. And the bad part about it, I was making payments already. SO STAY AWAY FROM THEM. YOU MIGHT WANT TO TRY XXXX, I HEARD THEY ARE BETTER. BUT DONT QUOTE ME ON THAT. SHOP AROUND, DO SOME RESEARCH.

Tom321 writes "the Collection agency will try to sue the pants of you while trying to steal your shirt and swipe your food in the process. This happens 100% of the time"

That is the biggest lie on this website, clearly you work for a collection agency and do not like settlement companies. First of collection agencies rarely sue. If ANYONE is going to sue you its the original creditor, and you can actually breath easier when a bank assigns your debt to a collection agency (If they hired an attorney though and you receive a REAL summons vs the THREAT of lawsuit, then you are being sued, but even can still settle at that point if you have some funds or arrange some meaningful pmt arrangements where the settled amt is paid of in a short period of time). Collection agencies buy debt for pennies on the dollar and they do not make money by suing people. It is expensive to hire attorneys and especially to FLY them to your county courthouse. (that is why some large collection agencies set up "suite" address in all 50 states which are nothing more than PO boxes with a toll-free number to make it look like they are local to you and easy for them to show up if they actually would sue) Its just NOT part of the business model of collection agencies for obvious reasons. And for you to say 100% of the time is ludicrous, especially when the debt may be just a few hundred dollars...lol

See....I'm so glad I spent the last year learning about this industry. All because of people like the post above. I can't be fooled anymore.

Debt collection is BIG business. It's growing at an alarming rate. Why do you think there are a ton of debt settlement companies? Collection agencies sue 100% of the time. If it's chump change then no they wont. But WHAT is chump change? The company will decide that. If the CA is outside of your state they will hire an instate law firm to sue you. See...no flying anyone anywhere. They are already there. (WAITING) Everyone knows CA's make money by bringing you to court. It costs close to NOTHING to sue you these days. Petty cash to CA's compared to what they will get if they win. (ELECTRONIC FILING) Anyone ever heard of Pressler & Pressler? That's all they do is sue. They are hoping that you don't come to court. Most don't. Walla....default judgment against you. The CA just made money on you. FOUND MONEY at that. Or we all know the tricks. Send mail to a residence where they know you don't live. Send mail to someone who has a name close to you. Again BAM no show in court. FOUND MONEY.

This industry is so ripe with free money to collect that law firms are setting up their own CA's so that they can collect and get in on the racket. Which is illegal by the way but law firms have found legal loop holes around the law. Collection agency (A) say they hired law firm (B) to sue you. But in reality collection agency (A) and law firm (B) are actually the same company. These guys are so out in the open with it, Collection agency (A) and law firm (B) have the same address sometimes. How crazy is that?

SOOOOOOOOO: Quote: Collection agencies buy debt for pennies on the dollar and they do not make money by suing people. It is expensive to hire attorneys and especially to FLY them to your county courthouse.

Collection agencies do buy debt for pennies on the dollar. That is right but the rest of the sentence is pure garbage. For those who have been through it know the TRUTH. And I went through it.

Suing in court is also BIG business. Quote: "If ANYONE is going to sue you its the original creditor" No No No No No No. If ANYONE is going to sue it will be the CA. Original creditors write the loss off (Charge Off) and collect from their own insurance and then SELL the debt to a CA. That's not saying that the original creditor will not sue. Sometimes they do.

Get a clue guest.

But like I always say. Look into this for yourself. It's all over the net.

IF YOU ONLY MADE 1 PAYMENT IF YOU PAY YOU FEES IN FULL THEN YOU CREDITORS GET PAID QUICKER AND YOUR FEES ARE NOT TAKING 15 MONTHS HOW IS THAT SHADY THEY ARE A LAW FIRM HIS NAME IS KEITH ANDERSON NELMS GO TO THE ALABAMA BAR AND LOOK HIM UP AND THEN TELL ME THEY ARE NOT A LAW FIRM

Tom321 is like 15 years old or something and never really knows what he/she is talking about. He has over 100 posts of this forum with nothing but speculations as commments. He will eventually grow up sometime...

MOOOOOOOOOOOOOOOO round up the cattle!

please stay await from allegro law company, they will lie to you and take your money like they did to me. the credit cards companies most of the time do not accept their propossal, that is why the credit exchange and allegro tell you to do not answer or talk with your credit cards people when they call you.please becareful, plus you're going to pay them $59.00 dollars a month just for them send your payments. i made the mistake to believe in them and they took $300.00 dollars away from me, a hard working single mother who is working all shift possibles to support my two kids. please just call your credit card company and talk to somebody that can help you with a payment plan like i did.Now i'm fighting to get my money back. good luck to you.

Hi guest I DO have over a hundreds posts on here while others have tens of thousands. What's your point?

And 99% of what I say is not speculation. Just check my track record and varify my comments. But I know you won't do that......LOL. Then again I know you know the truth....LOL.

Is that you Edward?.....LOL.

Tom321--I've actually settled accounts with CA's recently and the debt had been sold...they weren't simply working for the CA. I'm confused as to why you would say that CA's sue 100% of the time...that's simply not true.

ValleyGirl they do sue 100% of the time but if you pay them they won't. Not to say it doesn't happen often. Some CA's will act like you never paid them and sue anyway and others will except your payment and then sell it again to another CA for a profit and now you have to PROVE to the next CA that you paid off the debt. If you don't have anything in writing what can you say? Pressler & Pressler are notorious for both scenarios.

That's why you always ask for everything in writing from CA's. Like I said its big business now to sue. They wrote the laws to favor them. The days of the 80's and early 90's are gone. They are coming to get that money.

So I hope you got everything in writing?

i work in the collections industry the worse thing you can do to your self is join a sebt settlement company. they basicallyu charge you a lare fee to do what you can do yourself. agencies dont do anything special for them. they are a major rip off. you are wasting your money when you could actually be paying your creditors. they tell you they can do all kinds of things and really they just collect your money for about 6 mnths or so for their fee then after that they will start to pay your collection accounts but in the meantime if the creditor decides to sue you or pursue other avenues they will these compansy say the y can stop them but they dont do anything