Debt Settlement

Americor is Screwing Up My Credit While Settling My Debts

Written by Steve Rhode

Question:

Dear Steve,

I am using Americor to settle my debts. They have allowed two of my accounts to go into collections, one legal collections after being with them for 8n months. What should I do, pull out of the agreement and try to settle my debts myself. They are screwing up my credit more than I ever expected.

How should I get out of this mess. Debt is about 23000

Samantha

Answer:

Dear Samantha,

The way many companies deliver a settlement solution is to bank your monthly payments and not pay your debts until they either get enough money saved to settle or the accounts get at least 90-days past due and in the right department to begin to settle.

Being delinquent on your accounts will land you in collections and if the company sends the creditor a cease and desist communications letter or a Power of Attorney form it can accelerate the movement of the account for legal action.

I would urge you to not leap to withdraw from the program in haste since you may have lept into it in haste.

The first stop should be for you to get out your client agreement and see what you actually agreed to when you enrolled in the debt settlement program. Most often the client agreements mention these consequences when the salespeople don’t.

Before you leap to do anything we need a plan of action to follow. Is the right course of action for you to try this yourself? Maybe not. You have no experience doing this especially when it is already placed with an attorney.

At this point, you are so far into this what I think you have mostly is a customer service issue and a difference between what you may have thought you were purchasing and the service you ultimately agreed to.

If after talking with customer service, you want to escalate your issue, then read How to Get Your Money Back From a Debt Relief Company if You Feel Like You’ve Been Scammed.

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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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