I am currently involved in debt reduction on two of my 4 credit cards. We have been burned before with financial advice and people seeking us out , claiming to be on our side. I am looking for some good adivice.
I received a letter from the company Credit Relief Today. It has a case number and and says I could eliminate my unsecured debt my up to 50%. I spoke with a representative, John is his name, he gave me the website, his direct phone number in Sacramento Ca. , he told me the process and the difference between their company the the debt consolidators. I want to know if this company is for real for fraud. Could you help me find the answer?
there Sac. phone number is 916-873-1562. The letter has a heading of”
National Debt Relief Stimulus plan
address: Debt Servicing Division
It sounds like a fairly typical mailer that I’ve reviewed before. See this article with samples.
I previously wrote about another similar program, the Consumer Debt Hardship Initiative, that was linked to Credit Relief Today as well.
Frankly I’m surprised Credit Relief Today is still at it with these mailers. There is no national debt relief stimulus plan. That’s just not true.
And the claims the sales representative made to you will be illegal as of September 27, 2010 under the new Federal Trade Commission telemarketing sales rules. See this guide as to what must be disclosed.
In looking at the Credit Relief Today site I can’t see how their process is different than that of every other debt settlement company. They say:
Settling of Your Debt. Once you have been enrolled into the program, the independent processing company will commence the Service. You will be advised of all good faith offers made by creditors and debt collectors, and of their acceptance of any offers made by the independent processing company. The independent processing company will not settle any account without your approval, and you have absolute discretion to accept or reject any settlement offer. A settlement can only be completed once the full funds are available in your settlement trust or savings account. – Source
In fact I’m left with a new concern after reading that on their site. Since they allude to an “independent processing company” I’m left wondering if Credit Relief Today is just a front-end marketing company trying to sell people debt settlement and not the company that would actually be able to service your account.
So I’m left with a few concerns and some homework for you.
- The mailer seems misleading.
- The savings estimates seem unfounded.
- The company seems it is a front-end marketing company and not the actually settlement provider.
- If you want to continue to pursue this option I suggest you ask them for a copy of any contract you would need to sign before you obligate yourself to anything.
- Let me know what their fee structure is and if the fees will be paid before settlements are actually achieved.
- Ask the sales representative for his “Good Faith” estimates of the services they will provide based on the new rules that begin soon.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.