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I Signed Up With Robert S Gitmeid to Eliminate My Debt and I’m Unhappy

Written by Steve Rhode

Question:

Dear Steve,

Signed up with Robert S Gitmead for credit consolidation. All but one of my accounts have been settled, but they did not tell me that my credit would be destroyed. I have always had good credit, I signed up so I could pay them off instead of paying interest forever. Had I never paid these bills, my credit would probably be the same that it is now even though I have paid thousands on these! please help. What can I do?

What can I do? What legal recourse is there?

DK

Answer:

Dear DK,

I see Robert Gitmead is an attorney in New York who offers debt resolution services. While I am sympathetic to waking up to a surprise regarding your credit, that is the way settlement works.

Typically you fall behind and during that time the settlement funds are saved. Eventually a settlement is offered and accepted. This will negatively impact your credit. It’s the way settlement works. If you are not behind by about 90 days then the settlement offers are no good or don’t exist.

I’ve yet to see a client agreement from a debt settlement service provider that did not reference the impact it may have on your credit. I would urge you to pull out the service agreement you signed and read what it says about the impact of settlement and/or the impact on your credit rating.

Ironically, bankruptcy is often the fastest way out of debt for the least cost. Both bankruptcy and settlement leave you with reduced credit but bankruptcy can be a faster recovery. See Those That File Bankruptcy Do Better Than Those That Don’t.

These credit score considerations don’t even account for your possible tax liability you may be facing over the forgiven debt up to the point you became insolvent.

As far as some sort of recourse, you’d have to chat with an attorney who is licensed in the state where you live. But your first stop should be to read your client agreement again I clearly understand what your agreed to.

READ  Is DebtConsolidation.com Smoking Dope?

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About the author

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.

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