American Express cancels settlement
Date: Wed, 06/23/2010 - 15:38
My agent from the settlement company told me that he just had a case where American Express took an account back from a collection agency after a settlement deal had been reached. Apparently, this started happening this month. The individual had made his first payments and once AX saw that the account was being taken from a bank account familiar with the ones used by debt settlement companies, they took the account back and broke the deal. Now this guy owes the same amount of money and just wasted those first payments.
My agent warned that the same might happen to me unless we use a bank that AX will not suspect that I'm working with a settlement company, so AX will think that they worked the deal directly with me therefore avoiding that problem.
Now, my question is, can that man take AX to court? After all, the debt settlement company reached a writing agreement of the settlement with the collection agency, which happens to be collecting the money from AX? I would like to know in case I may have to do the same. Thanks.
Wow. It sounds to me like the guy at the settlement company is
Wow. It sounds to me like the guy at the settlement company is pretending to be the client. In other words, they are not being upfront that they are negotiating for someone else. I have heard that some cc companies will not deal with debt settlement companies and I often thought they probably just call and say they are the client. After all, the cc company has no idea what your voice sounds like anyway.
I'm not a lawyer so I don't know if the man in question can sue. I guess it would depend on whether or not the negotiations were done in good faith or if Amex is pulling the deal because they feel they agreed to it under false pretenses. Either way I doubt you are getting the full story.
Oh by the way, where do they want to move your money to? Are they moving it out of their escrow account and into an account in your name? Or are they moving it to some random person's bank account - that I would never ever agree to. Don't do it if that is the case. Insist that it goes back into your account for the payment.
I never thought about that aspect. The collection agents I've sp
I never thought about that aspect. The collection agents I've spoken to have said that they will not work with settlement companies, yet they called the settlement agent while I was on the phone with him!
The settlement company wants to change it to a bank account to my name for the next 4 months (the duration of the settlement) So the collection agency will deduct the payments every month. What do you recommend?