i have about 23k in credit card debts, i am fine for now paying at least the minimum payment due and at times pay extras. I received a letter from Americorfinancial.com stating that they can reduce the debt up to 50 %. How true is this and what are the pros and cons.
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Any debt settlement company that promises or makes you believe they can reduce your debt by a specific percentage is not telling you the entire story. The debt settlement company has NO control on the debt reduction, if any, offered by your creditor. More importantly, a statement like a 50% reduction is misleading when the debt settlement industry itself says they only settle around 10% of all debts enrolled. The failure rates for debt settlement programs offered by most upfront or advance fee debt settlement companies is pretty massive.
Looking at the web site for Americor Financial raised a number of “red Flags” for me.
- They do not list the state they are located in or their address. – Source
- They even say the 50% reduction is not an accurate of final amount. “Settlement estimates of 50% are examples of past performance of settled accounts and do not take into consideration our service fees or potential tax consequences.” – Source
- Their display of current settlements is meaningless since you have no idea what their actual average is. – Source
- Their site does not provide a comparison of the benefits bankruptcy offers you to eliminate your debt quickly and legally.
I did find a mention of the web that Americor may have sent out a letter that was about the National Debt Relief Program, there is no such program.
There was a mention that Americorp Financial was hiring and they were located in Irvine, California. – Source
The only registered company I could find in Irvine with a name that was similar was Americorp Financial, LLC at 18881 Von Karman Ave, Suite 1500, Irvine, CA 92612. The company was only just registered to do business on October 15, 2009. – Source
The BBB reports there is a company called Americor Financial at the same address but that company claims their web site is at Americorfs.com. – Source. The BBB reports the Chief Operating Officer is listed as Robert Guy. – Source
Because of their lack of information on their AmericorFinancial.com site, their claims which you related that I find dubious, apparent lack of experience in this field, and missing relevant information for you to compare options, my opinion is to give them a pass.