bitrswt99 Posted February 23, 2007 Report Share Posted February 23, 2007 Hello,I am so glad to have found this site!! I really need some advice... My husband and I went through financial turmoil last year and it ended up taking a major toll on our bills. Unfortunately, the 2 biggest bills were Capital One (13K) and CitiFinancial (5K) accounts -- BOTH of which were in my name only. We were unable to make monthly payments, so by September, both accounts were very late, I was getting daily calls from the creditors and I had no idea what to do or who to turn to! It was literally making me sick. Anyway, I decided to try debt settlement because I had previously done credit counseling and didn't really like it, and I needed to pay off my accounts at a far less amount than the balance - as quickly as possible. I stumbled upon info for debt settlement and it sounded like just what I needed. I enolled both accounts -- of course, I was told that by 3 years everything would be paid off at a 50% less amount, but that the accounts would show as "Paid - Charge Off" or "Settled" on my credit report. I thought that this would be a semi-positive thing since it showed that I at least attempted to pay something, right? So I started making the $271 payments, but still never really felt comfortable because I kept thinking and by December, we decided to refinance the house. My DH has great credit, so it's all in his name and we were able to cash out 25K - which we were going to use to pay off the program quickly and close the accounts. Well (backtracking a bit), since about November I had been all over the internet researching debt settlements and how they actually go about it and so forth. I started finding more and more negative information, but still I thought it was better than to not pay. I decided to try and settle the CF account myself directly with the creditor to see if they would actually agree... Much to my surprise they did! I actually was using the advice I found online to "stick to my guns" and finally they caved and agreed to settle at about 40%. I thought that was pretty good and it would save me the fees I was paying Freedom Debt Relief, so I removed the CF account from the program and settled directly with CF with the money from the refi. I wasn't so lucky w/ Cap One... they (the collection agency - at this point) wouldn't even hear of it. So I kept that account w/ FDR and asked for an accelerated adjustment to my account -- basically collect all the money they would need to settle. They came up with $6150 and they withdrew the amout in mid-Jan. Oh -- one of the reasons I started feeling uncomfortable with FDR is because you can never get through to their "customer service" department. I finally zeroed in on one particular cs agent - Simon, and made sure to keep his extension number and email address on hand. He really has been helpful, at least he seems sincere. I have yet to hear if anything has been settled -- and he is out of the office. So I emailed cs support and NO ONE has responded since yesterday morning!Fast forward to today... When I stumbled onto this site I found a page that contained emails from people in the same situation I was in. On that page, I read that Debt Settlement companies are sometimes worse that Debt Consolodation Companies because they disguise themselves as the best alternative to help pay off your debt at far less than owed. Then I saw that all they do is keep your money in an account so that once enough is collected (in 3 years) they can then settle. How would they know what the settlement was going to end up being -- or even if there will even be one! Also, if your building up your account during all this time - won't the creditors have already reported your account as Charged-Off since they don't even know a settlement is in the works??? What is the point of even doing this program, if you get the same end result??? And I could just go on... I am now again sick to my stomach and don't know what to do. They have $6150 of my money and I have no idea if they have even attempted to "settle" with Cap One. Since my credit report is now ruined (by the way, prior to 2006 my score was in the 720s) and Cap One has me as a charge off, should I even bother to pay anymore? Won't the charge off come off in 7 years, whether or not I settle?I am so sorry this is very long, and I hope you were able to hang in there! I really - really need some help and advice if I should just withdraw from FDR, take the loss in fees and start to rebuild my credit from here on out? All I've been wanting to do is cry because it seems no one can help I definitely appreciate any advice and again, sorry this post was so long. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted February 23, 2007 Report Share Posted February 23, 2007 LAWYER. ASAP.http://www.naca.net/ Link to comment Share on other sites More sharing options...
bitrswt99 Posted February 23, 2007 Author Report Share Posted February 23, 2007 Thank you Secret, but I just got off the phone with them and "they are in the negotiation process." I know the account has already gone to a CA since those calls started shortly after I joined FDR. I thought I just read that you shouldn't settle with a CA -- isn't this what they are in essence doing?!? Or, do they settle with the OC?? I want to withdraw what I can if this will ultimately give me the same credit result!Please help!! Link to comment Share on other sites More sharing options...
willingtocope Posted February 23, 2007 Report Share Posted February 23, 2007 I just got off the phone with them and "they are in the negotiation process." Got off the phone with who? Link to comment Share on other sites More sharing options...
bitrswt99 Posted February 23, 2007 Author Report Share Posted February 23, 2007 With FDR to check the status of my account. They are in "negotiations" with I assume the CA... which is probably BS! Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted February 23, 2007 Report Share Posted February 23, 2007 I was referring to getting a lawyer to help you get your money back from FDR. You need to get away from the sleeze, and focus on what is going to be some serious damage control (which we can help you with). Link to comment Share on other sites More sharing options...
bitrswt99 Posted February 23, 2007 Author Report Share Posted February 23, 2007 I will contact a lawyer in my area, thank you!! Do they offer free consults or depends on each practice?Do you guys think it's too late in the process to be able to leave the program? Is it illegal for them to hold me to the program now that they have my money Link to comment Share on other sites More sharing options...
KiddoNeedsCredit Posted February 23, 2007 Report Share Posted February 23, 2007 nothing to add except a sincere good luck. A lawyer sounds like the way to go to get your money back. Link to comment Share on other sites More sharing options...
bitrswt99 Posted February 23, 2007 Author Report Share Posted February 23, 2007 Thank you all for your help!! And quick responses at that!!The lawyer I met with basically told me to get out of the program -- which in the contract it states that either party is able to cancel with written notice, but 15% of fees (for "ALL" the work they did thus far) will apply. Since most of those fees were upfront, I could potentially get back all my money!! The lawyer said you're better off keeping the money, using it to pay off any other legitimate debt I may have and if CO decides to sue, then they will see if it's even worth it depending on my assets... which I have none, since our biggest is the house that is only in my husband's name. He said most likely they won't come after me, but just to know that there is potential.As far as the CA, he laughed. He said they are a joke and don't worry about them. If I have any trouble with FDR or anyone else, he will help me with the case.So, for now I am VERY VERY relieved!!! Thanks again!!! Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted February 23, 2007 Report Share Posted February 23, 2007 Yay!!!!! xdancex xdancex Now, stick around, read up, ask questions when you have them. It's not as bleak as you think. Sure, it will take a while to crawl out from under the stress of debt, but each step gives it's own rewards. Like today. Keep us updated on your progress! Link to comment Share on other sites More sharing options...
KiddoNeedsCredit Posted February 23, 2007 Report Share Posted February 23, 2007 CONGRATULATIONS!!!That's great news! Link to comment Share on other sites More sharing options...
bitrswt99 Posted February 24, 2007 Author Report Share Posted February 24, 2007 I'll definitely stick around!! There's just way too much to learn on here and I have a long road ahead of me!Funny thing... I emailed FDR and basically told them that their way of doing business is cr*p and that they really need to revisit their customer service standards. Oh and of course to withdraw me from the program and I expect a prompt return of my money. And mentioned the BBB somewhere in there How long did it take to get a response?? 30 minutes! This from a company that used to take 3-4 emails from me before someone would respond... and phone calls? Forget it! Link to comment Share on other sites More sharing options...
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