Looking for a bit of guidance here. My boyfriend recently decided to sign a debt management plan agreement with Pinnacle Financial Management Corporation. His cost to establish the plan was $400, which he recently paid to this organization. He was under the impression that his credit cards would be paid off, and that he would therefore no longer be receiving bills from these two cards.
However, when my boyfriend recently spoke with Pinnacle regarding the existing minimum payment amounts, charges, etc., that continue to show up on his credit card (now consolidated) statements, he was told that it would take "a few months" for everything to settle in and "not to worry about it". He has not gotten a straight answer and I just want to feel things out with others who have gone through this before. How long should it take before he no longer owes minimum payments to these credit cards, considering he has already paid Pinnacle their fee to begin implementation of his consolidation.
It really bothers me that this company is not a member of either ethical credit consolidation organization, and I am blown away by the fact that he did no research or comparisons prior to signing an agreement with Pinnacle.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.