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We Are Working With a Debt Settlement Company But Not Happy With Them. How Do We Switch? – Kari

“Dear Steve,

Our family is currently in debt close to the amount of $20,000. We are also working with a debt settlement company however are not happy with their services.

Our debt is through major credit card companies, Capital One and Bank of America.

My question is regarding working with a different debt settlement company. The company we are currently with seem to have no problem cancelling our services. However they indicated to us that once they cease their services that the banks will not accept another offer from other debt settlement companies.

Would you mind verifying the truthfulness of that statement? And if there are specific companies that you would endorse. We live in Colorado Springs and are wondering if going through someone local would be better?

Sincerely,

Kari”

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The Answer

Dear Kari,

I am not aware of anything that would prevent a new company from picking up where the company you terminated left off. In fact to check on this I called and confirmed it with Michael Bovee from Consumer Recovery Network, an AACC member.

Michael advised that you should contact your two creditors and rescind the power of attorney the current settlement company most likely sent in to the creditors. Once that is out of the way a new company can pick this up for you.

As far as companies I suggest, I recommend members of AACC who have pledged to put consumers first. One of the AACC member companies will be able to take good care of you and if you are not satisfied for any reason, let me know and I’ll deal with them to make sure you are happy.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Tips

    Kari,
    My suggestion would be to get out of the program you are in. Unfortunately I can’t guarantee that you will be reimbursed the fees you paid out , this depends on your contract. Everyone is pretty capable of negotiating their debt on their own, there should be absolutely no reason why people should pay an abundance amount of money to someone else to do a job that they can do! Bank of America is really flexible you get them to settle your debt between 20 -40% of the balance do not pay more then that. Capital One depending on which collection agency and if you have been taken to court , your looking at around 50-80% of the balance . Good luck and remember don’t let them intimidate you!

  • Tips

    Kari,
    My suggestion would be to get out of the program you are in. Unfortunately I can’t guarantee that you will be reimbursed the fees you paid out , this depends on your contract. Everyone is pretty capable of negotiating their debt on their own, there should be absolutely no reason why people should pay an abundance amount of money to someone else to do a job that they can do! Bank of America is really flexible you get them to settle your debt between 20 -40% of the balance do not pay more then that. Capital One depending on which collection agency and if you have been taken to court , your looking at around 50-80% of the balance . Good luck and remember don’t let them intimidate you!

  • John Henle

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • John

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • John

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • John

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • John

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • John

    Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • Chris Schornak

    Kari,
    What is it that is making you unhappy with your current debt settlmenet company? Damon Day and Sean are telling you the truth and so is Steve. You can cancel with your current DSC without any impact on future settlements, whether you do it your self or hire a DSC to do it for you. Just some FYI about dealing with Capital One, they are tough cookies to deal with and for the most part they will not stop charging you interest, so work on getting that bill settled/paid off first. If you wait 4 years to try to get your capital one debt paid off, it will probably double.
    Warm Regards,
    Chris Schornak

  • Chris Schornak

    Kari,
    What is it that is making you unhappy with your current debt settlmenet company? Damon Day and Sean are telling you the truth and so is Steve. You can cancel with your current DSC without any impact on future settlements, whether you do it your self or hire a DSC to do it for you. Just some FYI about dealing with Capital One, they are tough cookies to deal with and for the most part they will not stop charging you interest, so work on getting that bill settled/paid off first. If you wait 4 years to try to get your capital one debt paid off, it will probably double.
    Warm Regards,
    Chris Schornak

  • SeanDSLegalPlan

    Agree 100% with Damon- That is news to us! Run, dont walk. Interested in who the company is that told you that blatant lie.
    If you still believe a debt settlement program may work, NEVER pay fees up front for the service! Their goal is to keep you paying their fee- NOT to to settle your debts.
    Sean Ryan
    Active Debt Solutions

  • Damon Day

    Yes, what the settlement company is telling you is just a line of B.S. The real issue is going to be how much fees have you already paid this company and what the likelihood is that you will get those back.

    http://getoutofdebt.org/Damon-

  • http://DamonDay.com Damon Day

    Yes, what the settlement company is telling you is just a line of B.S. The real issue is going to be how much fees have you already paid this company and what the likelihood is that you will get those back.

    http://getoutofdebt.org/Damon-Day

    • Anonymous

      Agree 100% with Damon- That is news to us! Run, dont walk. Interested in who the company is that told you that blatant lie.
      If you still believe a debt settlement program may work, NEVER pay fees up front for the service! Their goal is to keep you paying their fee- NOT to to settle your debts.
      Sean Ryan
      Active Debt Solutions

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    Sub: Guest Post Request

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    Contact
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