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


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?



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.

See also  Client Retainer Observation From Law Firm Offering Settlement


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Steve Rhode

7 thoughts on “I Signed Up With Robert S Gitmeid to Eliminate My Debt and I’m Unhappy”

  1. I’m sorry to be clear, the old debts don’t show “bad debt” written off. They show as “Closed – Paid Satisfactorily” then the sub comment is “Paid less than owed”. Although these same accounts still show that I missed payments on them for several months during the time they were being negotiated by NDR. The part that says “Closed – Paid Satisfactorily” with the sub comment is “Paid less than owed” is how they showed up when I filed for bankruptcy many years ago. I guess to me, there’s not much difference how it shows up on my credit report or how it affected it except that bankruptcy lasted much longer. During the time that NDR was negotiating, I still answered calls from collectors and spoke with them. I advised that I was going through NDR to settle my debts. Most of them left me alone when I told them that. I think everyone’s debt and circumstances are different so there are probably circumstances in which bankruptcy is the better option.

  2. I actually disagree with the reply. I completed a program with NDR. They emphasized that my credit score would go down temporarily and it did as expected. But the part I disagree with is that it didn’t affect my credit longer than what bankruptcy did. I filed for bankruptcy many years ago. From beginning to end, bankruptcy was on my credit report for 7 years before it was removed and my score suffered terribly from it. After using NDR, everything was negotiated and paid within 5 years and my credit score began to improve again. Yes, there are still things that show as “previous late payments” from 3-4 years ago during the time they were negotiating. But I just completed less than 2 months ago and my score is in the mid 600’s for the last 6 months now and because I make better choices with my spending now, it continues to get better. Based on previous experience with bankruptcy, if I had filed bankruptcy instead, then I would still have roughly 2 years of the bankruptcy status and the past dues left on my credit right now. The accounts that NDR settled on my behalf show up as “negotiated, paid less than owed” which is exactly how they showed up when I did my bankruptcy. About half way through paying on my agreement, NDR tried to “sell” my account to another company who claimed they would give me what sounded similar to a debt consolidation loan. It was optional but when I looked the company they were trying to “sell” me to, it seemed like the cost was much greater and the company didn’t have a very good reputation. I declined the offer and continued to pay NDR the way I had been until completion. I had a good experience with them, maybe not everyone will, but I did and I’m happy with the way my credit is looking now.

  3. I am currently in debt resolution with Gitmead and Associates through the National Debt Relief Program. The people at NDR as well as the people at Gitmead were very clear that my credit score would take a huge hit BUT unlike bankruptcy as these accounts are being satisfied (they are actually being paid an agreed upon amount) the creditors report my payment and already my credit score is climbing back up. They settled for THOUSANDS less than owed on all of my accounts and also stopped all interest so this really has been a godsend.

    • Thank you for the comment. Just to put this in context. With bankruptcy, your debt is eliminated in about 90 days without any tax issues, stops all collection calls, typically costs less than $2,000, and your credit climbs quickly as well.

      I’m curious if they mentioned that the settled debt that was written-off will be reported as a bad debt on your credit report?

  4. This makes sense Robert Gitmied is an “attorney” that National Debt Relief hides behind to charge advance fees for debt settlement and operate in States where debt settlement isn’t legal. I would go to your States Attorney General and raise hell. After that you will get a refund. Good luck.


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