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Newbie please help should I use SDS West Corp.?


frenchv
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Please provide input before I pull the trigger. Due to unforseen events I found myself in a dire situation.

I can no longer sustain my monthly payments to my cc and loans. I am in the process of using SDS West Corporation. They will assist me by negotiating a payoff with the CC and Cash Call loan.

However for this to happen, I have to stop making payments and let SDS West Corp. be the mediator. Their program is to contact the cc and Cash Call loan, work out a pay off amount. Meanwhile I deposit a set monthly payment into a trust account.

They have explained to me that this process will hurt my credit score, but they also mentioned that when they make an agreement with the cc and cash call. They will request in writing that the CC and Cash Call will remove the negative marks on my score once the balances are paid off.

Please give me inputs before I do this.

I am in the process of getting a 2nd job but even with the additional income I still won't be able to pay the monthly pyts. plus my living expenses.

here where I stand

HB cc balance: $4700, monthly pyt. $165 interest rate 30%

US bank card balance: $7500 monthly pyt. $345 Interest rate 20%

Cash Call loan balance: $5000 montly pyt. $245 Interes rate 59%

Plus not counting my other expenses

FICO score 561

So far behind 2 weeks in pyts for both CC but now cannot affor to pay them anymore.

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  • 1 month later...

no way

THIS IS A LETTER I WROTE TO MY PARENTS, CALLING TO ASK FOR THEIR FRIENDS ON THIS.

whoops. anyhoo, I am a defense attorney who does consumer cases. I would not advise using this company. not at all.

(email redacted)

http://www.aiccca.org/find_licensed.cfm?sstate=CA

not on this one either. these were the two list the better business bureau said to look at for credibility.

(email redacted)

Sorry been REAL busy today. But If he is badmouthing CCS I would say that he is a salesman/conman and is just trying to scare you away from the one non-profit that I know that will help you and that we as an organization (and that clark howard-- a local consumer advocate who is one of the nations leading expert on consumer issues-- will be speaking at a CLE of mine later this month)

read this. It reiterates what I am saying.

http://www.bbb.org/alerts/article.asp?ID=613

i would not give these guys money, and would go to cccs. The shields can do what they want, but these people are usually snake oil salesmen. The fact that he was badmouthing CCCS is a BIG red flag. They have the best reputation in the industry frankly. Bankruptcy trustees require that they go to cccs (and often did before the last law change). I would be VERY LEERY of doing anything with SDS West.

more

http://www.consumeraffairs.com/news03/credit_counseling.html

http://clarkhoward.com/shownotes/category/6/23/169/

credit counseling

Don't be taken by a phony credit counseling outfit! There are many companies out there, that because of a loophole in the tax code are able to call themselves "tax exempt" and claim that they want to help you eliminate your debt. In reality, they want to eliminate money from your wallet in the way of high monthly fees.

I also hear from many consumers that the money they paid in to the "counselor" never made its way to the creditors, making the person's credit rating plummet even more.

To find a legitimate counselor, contact the National Foundation for Credit Counseling, at www.nfcc.org or call 1-800-388-2227.

There is no listing for sds west on that site fyi.

Excerpts From Clark's Shows: credit counseling

Oct 03, 2006 -- Dirty collectors and "debt reduction" firms

Clark is being asked often lately about �debt consolidation� or �debt representation� firms. They all have fancy names, but they do the same thing. They claim they can take your debt and reduce it, as long as you pay them a fee up front. In reality, they are disasters for your wallet. And some are crooked. They are rogue businesses that take you for all you�re worth, even if you don�t have debt. They take money from people will similar or the same names, and it could happen to you. So, if you are contacted by a collector saying you owe money, you must ask for proof of the debt. If they are legitimate, they will send you the 5-day proof letter that they are required by law to send in the mail. So, even if you legitimately owe a debt, never give your checking account number over the phone. Make sure you send a check, and never post date it. Be on your guard.

May 16, 2006 -- IRS targets rogue "credit counseling" outfits

Every day on the show, Clark gets calls from people who are in some level of distress with debt. People are facing insurmountable debt, or so it seems. On top of that, they see late night TV ads for credit counseling services that offer to help you out of debt. They claim to be �non-profit� organizations just out to aid law abiding citizens. In actuality, they just want to take your money. The IRS has been after these companies for two years. And now, the IRS commissioner is about to take away the �non-profit� status from many of these organizations. So, how can you find the right people? The National Foundation for Credit Counseling is the accreditation body for legitimate credit counselors. You can find those legit organizations at its site, nfcc.org. Any fees these companies charge you are nominal and are to cover the cost of handling transactions with your creditors. Check it out.

Aug 22, 2005 -- Debt collectors violate the law by taking your money

Clark has had dozens of calls about collectors and collection agents pressuring people into paying money for past debts. Often times, people don�t even owe the money. But the collector has gone to a bank and basically bought debt that someone owed from the 80s. Typically, the debt has been wiped out during bankruptcy, but banks sell the debt anyway. Then, the collector looks up the name in a database, calls the person listed and starts screaming at him or her to pay this debt. Anyone with the same name could be contacted. Yet, some people get so intimated by the collector that they pay. One company Clark has talked about before is NCO. The company has been going after people who don�t owe any money after buying a bunch of debt from Chase Bank. What most people don�t know is that it�s illegal to try to collect a debt in bankruptcy. So, if you get a call from NCO, know that it is a scavenger organization that has been fined numerous times for violating the law. However, if you get a letter in the mail, you have to dispute the claim. It sounds ridiculous, but you MUST respond in writing and tell the organization that the debt is not yours. Otherwise, it becomes your debt automatically. And, even if you do owe a debt, never give your banking information � or a postdated check - to a collector.

Apr 05, 2004 -- Top 10 scams in the U.S.

Clark often reports on ripoffs going on in the consumer world. Today, he has a Top 10 list of scams, schemes and scandals, provided by the state regulators who watch over financial analysts and brokers. Drum roll please�. The No. 10 scam is variable annuities. If you don�t know what these are and you don�t have any, good. If you do, you don�t want to put any more money into these plans. They have massive commissions and are absolutely horrible for your wallet. No. 9 are scandalous mutual fund companies. No. 8 is Internet fraud. No. 7 are �high yield investment� scams. Some that Clark has received calls on involve exotic overseas investments that are a complete scam. Insurance agents who sell people bogus investments come in at No. 6. Most insurance agents are honest, but a number of them have been involved in very scandalous affairs. No. 5 are church ripoffs. Just because someone seems religious does not mean that person is on the up and up. At No. 4, phony brokers. Just because someone says something is going to be a great investment doesn�t mean it will. Promissory notes � or fake CDs � are No. 3. These are promises that someone will pay you later if you give them money. But there is no guarantee, and it�s not safe. No. 2 is any kind of scam against seniors. If you�re not involved in your parents� finances, be nosy! And, the No. 1 scam in the U.S. involving your wallet are Ponzi schemes. These are schemes where criminals recruit people to pay back other people who have invested, and then you have to recruit someone once you�re in. Eventually, these collapse because there are no more people willing to �invest.� There a lots of people who will sell you sizzle, but that�s all it is.

Mar 24, 2004 -- Senate cracking down on phony credit counseling services

For many years, Clark has warned us about the phony credit counseling outfits that claim they will help wipe out your debt in a snap. The amazing thing is that one out of every 11 families in the country calls these phony companies because they are so far in debt. The sad thing is that most of the companies pretending to help you are really crooks. They use their non-profit status to try and convince people they are legit. But the IRS grants non-profit status to just about anyone; it�s an honor system. So, these companies set up shop and start stealing money from anyone and everyone. The IRS has taken away the non-profit status of 50 of these agencies so far, but that is just a drop in the bucket. Clark thinks these people should go to jail for stealing from people who are in such dire straits. The punishment should be much more severe. The encouraging news is that the Senate is in the midst hearings about this very subject. The Senate�s governmental affairs committee is hearing from former employees of these companies. They admitted they used fake names and ripped off customers whenever possible without providing any counseling. These companies get people to pay them a couple thousand dollars up front and then they run off with your money. Clark is glad the Senate is finally looking into this problem, and we�ll keep you posted on what happens. In the meantime, if you�re in over your head, you want to sit down with an expert at a real credit counseling service. If it�s a legitimate organization, the employees will go over all of your debts with you and try to get you on a budget to control your finances. If you�re past that point, they will negotiate with creditors on how much you can pay them and they�ll put you into a legitimate debt management plan. The exchange of money is maybe $50 at the most, and that�s only if you are put on a payment plan. The phony companies don�t offer any counseling or budget help at all, and they charge you thousands. The Web site to find legitimate companies is nfcc.org. It�s possible that there are legitimate companies out there that are not NFCC members, but be careful.

>

>

> Brian,

> The company that we are talking to is SDS West Corp.

>

> www.sdswest.com 888-567-1406

>

> What they do is chrge a fee to negotiate lower amounts for the client. In

> PERSON's case, she owes 42,000. The would have her stop paying on the cards

> and instead pay $878 into a trust account with her name on the account. When

> she has enough money in the account to pay off one of the accounts, SDS

> negotiates about a 40-60% reduction in the namount due and pays that off.

> This way she would be debt free at the end of 32 months.

>

> The man she is dealing with I talked to after our conversation. He stated

> that CCC says that it is a non-profit but was in fact set up in 1962 by Visa

> as a means of holding off banrupty. He says that the CCC org. is front

> loaded meaning that you pay the interest first and then the principal. He

> claims that most people leave the system around 1 year further in debt and

> with their credit rating a mess because the payments are too high and they

> have pre negotiated rates with the credit card companies. Comments?

>

> Mom

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  • 2 years later...

This is a new post as of 9-30-09.

I have been working with SDS West for over 2 years now, and they are a COMPLETE waste of time. No one should ever hire these guys! All they do is charge you a fee for negotiating the same type of settlements anyone can reach by personally working with a creditor. They may claim to reduce your debt, but trust me - save the money they would charge you and work with yoour creditors yourself. Better still, work with a non-profit credit counseling agency, but DO NOT hire these guys or any other debt settlemeent company!

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