This is my first post on this forum and I 'm glad that I found it a couple months ago. It helped me a lot with regard to debt settlement but recently I ran into a problem and I don't know what to do.
First let me give you some background information:
I have $8,101.06 in debt with AMEX (unsecured) and about $11,000 in debt with Chase (also unsecured). It has been about a year since I payed anything to either of these companies. Since I had no money to give them, I just gave up. However, around November of 2010 I found out about this website and debt settlement.
Now for the story:
I read about how I could have a debt settlement agency do everything for me, but I didn't want to do it because of the costs of doing it. So, I decided to do it myself. I read somewhere on the internet that for the purpose of having proof and evidence it was better to do any type of communication with a credit card company or an collection agency through letters and/or e-mails .
First I wanted to get rid of my debt with AMEX. I first checked my AMEX account on-line and I noticed that I had a balance of $8,101.06. I then e-mailed AMEX to let them know that I wanted to do a debt settlement. They then replied to me and said that my debt had been handed to Redline Recovery Services. I next sent Redline a letter that stated that I was willing to pay $2,500 to settle the debt. They e-mail me and asked that I call them. Since I was in South Korea for work (I still in Korea by the way) I asked if I could do everything through e-mail. They agreed and they sent me a debt settlement agreement. The agreement is shown below.
When I received the agreement and found out that they agreed to settle for $2,500, I was excited. Soon after I received the agreement, I paid Redline $2,500. I never received anything that said that they received my money or any kind of response. Being the naive person that I was, I just assumed that everything was taken care of, However, just yesterday I thought maybe I should check my AMEX account again and see whether I still had a balance. Low and behold I still had a balance that was exactly $2,500 less than my previous balance of $8,101.06. I was shocked and in unbelief. What happened? I thought I paid it off. After I found out about the balance, I immediately e-mailed the person that contacted me from Redline and told him about my situation. However, I've yet to receive a reply. Did Redline lie to me? Now, I'm afraid to settle my Chase account because I just found out that my account was sold to Hilco and read some horrible stories about how people tried to do a debt settlement with them.
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.