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Debt Settlement USA closed - now what?


brock125
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I need some advice. I signed up with Debt Settlement USA about 3 years ago. i had two credit card accounts (Citi and HSBC) with them. They were able to settle my Citi account for 60% about 18 months ago. They also settled the HSBC account in July 2011 for about 40%. This was to be paid in equal payments over 6 months. A payment is withdrawn from my checking account on the 30th of each month and the last payment will be made on Dec 30, 2011. Here's my issue. I never received a letter or email from Debt Settlement USA with the settlement offer. They said they were going to send me one but they never did. I recently sent them an email and it was returned "Undeliverable". I just checked their website today and it says they have closed. I'm a little bit worried about my settlement on the HSBC account. The CA is Credit Control LLC / Resurgent. I don't have any actual proof that there was an agreement in place. I do have four withdrawals made from my account that show as checks from me to Credit Control LLC / Resurgent. I printed off the checks. That's the only evidence I have. I'm assuming the payments will stop after Dec 30, 2011. Should I then contact Credit Control LLC / Resurgent and ask them for a letter stating that my account has been settled in full? I'm afraid they'll try to screw me over and tell me I owe them more money. I'm just looking for some good advice as to what I should do. Thanks in advance.

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The Citi account was settled in full in April 2010. I made 2 payments (around $6k total) to a different CA to cover that account. A Debt Settlement USA person called my on July 26, 2011 to ask me about settling the HSBC account. Credit Control LLC / Resurgent had contacted Debt Settlement USA about my HSBC account. They told DSU they would settle the account for 40%. DSU asked me if I could do that and I told them I could do it if they agreed to payments over 6 months. DSU told me they would contact Credit Control LLC / Resurgent and get back to me. DSU called me back in about 15 minutes and said that Credit Control LLC / Resurgent had accepted my terms. DSU then set up the monthly withdrawals from my bank account. Like I said before, I have printed copies of the checks that are paid monthly to Credit Control LLC / Resurgent. That's the only proof though.

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Debt fixers are really collection agencies in sheeps clothing...more flys with honey, and all that.

Chances are DSU and Resurgent are owned by the same people.

Without something in writing stipulating the settlement, you're at their mercy. You can wait and see what happens after the next payment, or you can call Resurgent and see where THEY think you stand.

You might get lucky and they'll abide by the verbal agreement. You might not.

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I'm a little bit worried about my settlement on the HSBC account.

Yeah, I can see why and agree. Only I'd be a lot worried.

I don't have any actual proof that there was an agreement in place.

If you were still only a little worried, it's time to now be a lot worried.

I'm assuming the payments will stop after Dec 30, 2011.

How about you make that assumption a guarantee. Why don't you change account, put a block on the account for auto debits, contact the bank manager and advise them any debts are not to be honored. In other words get proactive.

Should I then contact Credit Control LLC / Resurgent and ask them for a letter stating that my account has been settled in full?

No, you should send them a letter (certified mail) telling them your account is settled in full and then laying out what the settlement terms were. In other words giving you some leverage. It is better than nothing to at least have something in writing, even if you write it this late in the game. It will at least force them to make a decision. If they stay silent, no guarantee, but it will look better, in court possibly, than I thought this was settled and was just waiting on them to tell me so.

I'm afraid they'll try to screw me over and tell me I owe them more money.

That's why you dictate the terms and take control of the situation. Stop being defensive.

I'm just looking for some good advice as to what I should do.

Your call on if it is good advice. However, what do you really have right now? You have no proof, assumptions, and a company that is now out of business that made an alleged agreement with some banks which you have zero proof of. Time to get some stuff in writing and try to pin them down by making it look as if your just sending confirmation letters.

Take the position in your letters that everything is agreed on. Make them start a dispute, not you defend what might happen.

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Thanks for the info. I appreciate your bluntness. I'm still fairly new to all this so all the tips, ideas and advice are very helpful. I now realize I screwed up and wasted my money by using a debt settlement company.

I didn't want to contact the CA before my last payment. I wanted to wait until I made my 6th and final payment and then contact them asking for a debt settled in full letter. It sounds like that's what you are suggesting. I checked the CA's website and they list an address with a P.O. box #. Is it ok to send certified mail to a P.O. box?

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You can do certified mail to a P.O. Box. I would send the letter but not ask them for a letter that the account is settled. I would tell them you have now settled this account, in full, per our agreement.

Pin them down. Don't ask open ended questions. Don't give them a chance to screw you some more. Write the letter from the position that your right, the account is settled, and there is no dispute to the fact.

It won't make it right just because you write it, but it will at least give you something.

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I wanted to wait until I made my 6th and final payment and then contact them asking for a debt settled in full letter.

I would do as Coltfan suggested and close out your bank account or at least put a hold on all debits. Don't let them take your money. Then I would send them a check for the amount they would have debited along with a letter stating that since Debt Settlement USA has closed, I am sending in final payment on this account as per the agreement you (CA) have with them and you will be expecting a confirmation letter stating that the account is now settled in full.

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