“I contracted a debt settlement company now that it changed. I signed with them back in May of 2010, this was before the new law changed for settlement companies not to be able to charge up front for settlements.
The contract is crazy, and I was stupid to sign it. I was totally delusional from stress and depression when I did sign it. It was nothing like the verbal sales pitch I got.
Even when the company makes a settlement for me they don’t see it through in a timly manner. Four have been made and so far none have been paid even though there is mopney to pay them.
They come up with numerous excuses to put off even paying the ones that are settled out of my global account set up by myself and the company. again the money is avaliable to pay the accounts.
The only reason in my opinion to delay is to keep getting monthly draws from me to make sure I stay I the program. I am afraid to do the ” How to get out of the debt relief program and get a big refund,” Because I have over $13,000.00 invested in the deal already.
At the risk of feeling totally stupid, I will tell you that the contract says that they can terminate at any time withut recourse and so can I. the problem is i will loose everything in put in. Now that is stupid on my part. I feel trapped because I am settling the accounts myself, and sending them the paper work to do the draft, and they tell me not to do that because it messes up the flow. What flow? The account is settled so just pay it!!!! The money is there?
So again be careful of the way these settelments contracts work. Read them good and have somebody who is sane to read them with you. Document everything. Most of them so far as I can see are set up to keep you in the program and drain you for all the money they can get, and not give service to match. I don’t know what to do. I actually hate this company now when at first I believed they would help me.
Is there any recourse. Am I basically trapped, or can I get a rtefund or get a re-write of the contract to be funded by progression of payments and settlements being made? Can I even get a copy of the new contract that them MIGHT have to use now after the change came in october of 2010.
Who is the company that you signed on with for debt settlement?
You refer to the 13k you have already invested into the process. Is that 13k total inclusive of advance fees you have been paying as well as what remains in your escrow account? Who is you escrow account set up through?
If you are sending letters of settlement to the debt settlement company and they are not being funded with available escrow funds, I believe you have legitimate concerns. A vague excuse like “upsetting the flow” does not hold water. The opposite is that by not accepting and funding fair offers your program “flows” to being sued for the unpaid debts.
You requesting a refund may/may not fall on deaf ears. It is certainly something you should explore, but I would encourage you to answer my questions in the comment section below before doing so. Your answers may provide details that would suggest a different course.
Who are the creditors you could have settled with that you refer to?
What were the offered savings?
What amount do you currently have available in escrow?
Just post your answers in the comments below. I look forward to commenting more once I have more detail.
Trapped in a Debt Settlement Contract. What to Do? - Dean by Michael Bovee
Michael Bovee is an experienced debt expert who helps answer questions on the GetOutOfDebt.org site. He specializes in helping people with debt settlement through education and assistance. He can be reached at the Consumer Recovery Network.