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Do settlement companies really deliver what they promise to the debtors? How can you detect a reliable settlement company?

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Do settlement companies really deliver what they promise to the debtors? How can you detect a reliable settlement company?

Not all the debt settlement companies are able to settle the debts of the consumers successfully. Some of the companies just make impossible promises to the consumers. All they are concerned about is the money. However, there are a bunch of good debt settlement companies as well. The representatives at the settlement companies negotiate with the creditors/collection agencies really well. I have seen settlement companies reducing the debt amount of the consumers by as much as 40%.

The main job of the consumers is to find out a reliable settlement company. They can spot a reliable company in the following ways:

a) Checking the fee structure of the company.
b) Going through the client testimonials of the company
c) Checking the success rate of the company
d) Checking the license of the company
e) Finding out if the company is accredited to TASC

Sub: #1 posted on Fri, 10/07/2011 - 22:50

nandydiana nandydiana

(Posts: 114 | Credits: )

i dodn't think there totaly honest the talk about ways they to put in to anuanty and wait 30 years to fally get the last pay ment nont the fax the keepp investing you money and the market goes downn so dos you money and they want to hold on to your money if there is a bankrupcey the they get the right you ton keep your money theres not to be protected or ur menoeynis gone

Sub: #2 posted on Mon, 10/10/2011 - 17:42

hauser_32 hauser_32

(Posts: 2 | Credits: )

it is very hard but one way is to see they take out your money without you perrmison and if you got i did have comonsence they will give in back as of affeter the keep callig all hours of the night and day i ran out of thing to say >>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>> >>>>>>>>

Sub: #3 posted on Mon, 10/10/2011 - 17:55

hauser_32 hauser_32

(Posts: 2 | Credits: )

Debt settlement companies typically charge the consumer 15% or more of their total debt for their "fee" to settle. The consumer must pay this amount before the company will even begin to try to settle their debt. Most companies only send cease and desist letters to your creditors, so the calls to you stop, making you feel as though they are being effective. Credit companies DO NOT have to settle with these companies. Many will not. so while you are making payments to the Consolidator, your interest and fees are still adding up and you have the possibility of getting sued or getting your wages garnished. Using an out of state company is particularly risky, as you have no protections if the company harms you. Would you be prepared to fly out of state to sue them? do they really exist in that state or is their location a PO box? To try to detect a reliable one, verify with their state that they are a registered company. see if they are licensed in that state. check their BBB rating, and, simply google their name and see what other consumers have reported about them. I recommend always trying to find a non-profit organization in your own state that is reliable. Consolidation companies are cropping up everywhere trying to take advantage of desparate consumers, so this is one area that requires extreme caution.

Sub: #4 posted on Tue, 10/11/2011 - 05:33

viren viren

(Posts: 2 | Credits: )

Greetings to all readers!

In my opinion, it's a gamble to detect a reliable ds company and even tougher to judge what they deliver, unless you;

1. Investigate them thoroughly. Use your favorite search engine and read, read, read.

2. Gather every shred of info about the company; the good, the bad and the ugly. Beware of sound alike companies, i.e. ABC vs. AB&C. Check the BBB, etc.

3. If you have made it this far in my response then you are in the correct place to ask questions and receive priceless intel.

In closing, I endorse this website without hesitation or any reservation as the best place to start investigating ds companies;

King "Kash" Jabba Labba

Sub: #5 posted on Sat, 10/15/2011 - 07:47

King Jabba Labba King Jabba Labba
Industry Expert
(Posts: 507 | Credits: )

some settlement companies do really do what they sat they are going to do but you also have your share of companies that do not.

The best way to determine if that company is a reliable legitimate company is by doing your research.

1. Research your state laws ,and this company on the internet.

2. If that company is listed in good standing with the better business bureau that is a real plus. Most companies that are fraudulent are not listed, or are listed with bad ratings with the better business bureau. Also look at the complaints they have, that will give you a better feel for what kind of business they are running. If they have a lot of complaints you might want to stay away from that company.

3. Request information on there program from them prior to signing anything. If they have nothing to hide this should not be a problem for them to provide this information to you.

4. Make sure this company does not charge you any fees until a settlement is actually done. With the new laws for debt settlement in the united states they are not allowed to charge you any upfront fees, any monthly fees ,or any enrollment fees. The only fees allowed at this time are once a settlement is done.

5. Make sure they do not commingle funds. Most legitimate debt settlement companies have trust accounts that they use for your settlements while in the program. These accounts are FDIC insured for your protection.

6. Do not make any decisions right away tell them you have to think about it and see if they give you the time to do so. If they try to sell you right away ,and will not allow you the time to think about this they are most likely trying to bully you into the program. Most legitimate companies want you to go in with open eyes and no concerns. Due to this type of program being a dual partnership, this takes just as much effort on your side as it does on the companies side to resolve your accounts.

and last but not least, listen to your gut. If you get a bad vibe from your conversations with that company do not take the chance. Your gut usually tells you the truth and If something seems off with that company it most likely is.

Sub: #6 posted on Fri, 10/21/2011 - 10:09

lladd81 lladd81

(Posts: 1 | Credits: )

Yes they do but the trick is you have to pay them a fee, they will contact the people you are in debt with and make settlement arrangements also handle the payments, but if the monthly price also includes their price. Also about the forst month or so you are still unfortunatley harassed by the creditors but after the settlement has been excepted they will go away. I don't think their is a for sure way to detect a reliable company but I used Debt Free and they did great for me, and I also like Practical Debt Relief (Cynthia) Tell her Kia sent you she is great.

Sub: #7 posted on Mon, 10/24/2011 - 12:20

mizdeva82 mizdeva82

(Posts: 1 | Credits: )

A reliable debt settlmenet company will NOT make promises and they will be upfront and honest with the consumer from the get go. There are too many companies advertising on the web and in newspapers, promising results that may be deceptive to the average consumer. A first meeting ideally should be in person, so I would definately recommned a company that is local. If a local company is not available, find a company with the highest BBB rating possible. (FYI....It is my opinion that an A+ rating may not be cannot possibly keep everyone happy...debts are emotional and often consumers expect (hope for) better results than can actually be achieved.
Once you interview a potential debt settlement company, they need honest "average" results of their settlement history. They should present both the positive and negative of debt settlement including the possiblity that the consumer could be sued during the settlment process and the fact they will (or will not, which is usually the case) represent them. They should inform the consumer that debt settlement WILL negatively affect their credit rating and explain why. Any contract should be examined by consumer with agency going over it with them and explaining in laymans terms what it really means and what BOTH parties obligations are. There should be no pressure to sign up...the consumer should be given the opportunity to look over and consult third parties about the contract and do research on the web for potential complaints. Only then if the consumer feels truly comfortable with the process and company they have chosen should they sign on the dotted line. However, they must continue to stay involved with the process...they only way the program will be a success is if they work together as a team.

Sub: #8 posted on Tue, 10/25/2011 - 11:16

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