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Scared to death

Date: Tue, 05/23/2006 - 14:26

Submitted by anonymous
on Tue, 05/23/2006 - 14:26

Posts: 202330 Credits: [Donate]

Total Replies: 9


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.?


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.


lrhall41

Submitted by Gretchin on Tue, 05/23/2006 - 14:38

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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.


lrhall41

Submitted by Gretchin on Tue, 05/23/2006 - 15:01

( Posts: 482 | Credits: )


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.


lrhall41

Submitted by Cow & Chicken on Tue, 05/23/2006 - 17:02

( Posts: 3571 | Credits: )


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.


lrhall41

Submitted by Cow & Chicken on Tue, 05/23/2006 - 17:16

( Posts: 3571 | Credits: )