Ask The Get Out of Debt Experts Debt Settlement

We Are Working With a Debt Settlement Company But Not Happy With Them. How Do We Switch? – Kari

“Dear Steve,

Our family is currently in debt close to the amount of $20,000. We are also working with a debt settlement company however are not happy with their services.

Our debt is through major credit card companies, Capital One and Bank of America.

My question is regarding working with a different debt settlement company. The company we are currently with seem to have no problem cancelling our services. However they indicated to us that once they cease their services that the banks will not accept another offer from other debt settlement companies.

Would you mind verifying the truthfulness of that statement? And if there are specific companies that you would endorse. We live in Colorado Springs and are wondering if going through someone local would be better?

Sincerely,

Kari”

Dear Kari,

I am not aware of anything that would prevent a new company from picking up where the company you terminated left off. In fact to check on this I called and confirmed it with Michael Bovee from Consumer Recovery Network, an AACC member.

Michael advised that you should contact your two creditors and rescind the power of attorney the current settlement company most likely sent in to the creditors. Once that is out of the way a new company can pick this up for you.

As far as companies I suggest, I recommend members of AACC who have pledged to put consumers first. One of the AACC member companies will be able to take good care of you and if you are not satisfied for any reason, let me know and I’ll deal with them to make sure you are happy.

Please post your responses and follow-up messages to me on this in the comments section below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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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.

15 Comments

  • Kari,
    My suggestion would be to get out of the program you are in. Unfortunately I can’t guarantee that you will be reimbursed the fees you paid out , this depends on your contract. Everyone is pretty capable of negotiating their debt on their own, there should be absolutely no reason why people should pay an abundance amount of money to someone else to do a job that they can do! Bank of America is really flexible you get them to settle your debt between 20 -40% of the balance do not pay more then that. Capital One depending on which collection agency and if you have been taken to court , your looking at around 50-80% of the balance . Good luck and remember don’t let them intimidate you!

  • Kari,
    My suggestion would be to get out of the program you are in. Unfortunately I can’t guarantee that you will be reimbursed the fees you paid out , this depends on your contract. Everyone is pretty capable of negotiating their debt on their own, there should be absolutely no reason why people should pay an abundance amount of money to someone else to do a job that they can do! Bank of America is really flexible you get them to settle your debt between 20 -40% of the balance do not pay more then that. Capital One depending on which collection agency and if you have been taken to court , your looking at around 50-80% of the balance . Good luck and remember don’t let them intimidate you!

  • Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

  • Kari,

    Are you sure you are on a debt settlement program where once a month you pay them and they keep your money, or are you on a credit counseling debt management program where once a month you pay them and they pay your monthly payments to your creditors? If you are on a debt management program, there may be some issues switching programs. Both Bank of America and Capital One have some restrictions on re-enrollment. If you are in fact on a settlement program, probably not much is going to be different if you switch to another company. In fact, you’ll be starting from scratch and it will be a very long time before you receive any type of actual debt relief.

    Please do yourself a favor and talk to a non-profit credit counselor and a bankruptcy attorney to determine what you should do. There should be listings for both in the phone book, and you can check them for complaints with the BBB. If you’re banking on a settlement program that will take years to complete, your creditors have a really good chance of suing you before you reap any benefits from a settlement.

    Good luck,
    John

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