I accrued my debt in a confidence crime in 2010; I have a police case open, but was told that it would take a couple years to go to court. I was drowning in interest fees, so I contacted Debt Point last Feb. 2011 based on a report my mother saw on a local TV show. Debt point is A+ accredited with the BBB. I talked to the rep and ended up applying to be a client with them.
They work with Legal Debt Pros (Attorney Brian Linnekins) rated C+ with the BBB. I didn’t think anything of it until I did a search in 2011 and found out how many alias business names that Brian Linnekins works under. I began having money drafted from my bank account in Feb. 2011 to Noteworld/Meracord. Legal Debt Pros didn’t begin to make settlements for a long time and I was noticing chunks of money being withdrawn from the Noteworld account without explanation. They finally made a settlement in June 2011 and two more to follow. I currently have one ongoing settlement payoff and two more that haven’t been negotiated yet.
I have gone to a bankruptcy lawyer and was about to file when the last settlement came through. It gave me a little hope. I just received a update from Noteworld/Meracord that they are applying for a CA money transmitter license (see below). With this, I am confused as to what will happen to all future drafts and settlement payments going to and originating from my Noteworld/Meracord account. I am also sketchy on whether to quit Legal Debt Pros (also The Debt Attorneys, etc.) and just file for bankruptcy. My debt was $42,000 at the time I signed up with LDP. Given the update from Noteworld below, should I be concerned about my pending settlements? Is bankruptcy the way to go?
“The State of California has recently adopted a new money transmitter law, and as part of our commitment to compliance, we’ve recently applied for a license under that new law. The application process with the State of California’s Department of Financial Institutions requires us to send a notification to all current customers residing in California. Please see the California disclosure below.
NoteWorld has applied for a money transmitter license with the State of California’s Department of Financial Institutions. Pending the Department’s review of the license application, monies received from you, and disbursed on your behalf, will flow to and from an escrow account at U.S. Bank Corporate Trust Services. The funds in this account are being managed by U.S. Bank Corporate Trust Services pursuant to instructions from NoteWorld. While these funds are in the escrow account, NoteWorld does not have direct custody or control of the funds and the funds will not be reflected as an asset on NoteWorld’s corporate financial statements. This arrangement should not otherwise impact the servicing of your account. You will still be able to view your reserve balance in the NoteWorld system. NoteWorld will continue to manage the customer service functions; will maintain account transaction histories; will facilitate changes to payment dates and/or amounts; and wil l provide notifications and other service-related communications to you. Any questions you may have can be directed to our customer service team at 1-800-535-9192.
NoteWorld is proud of its commitment to ensure protection for your hard-earned money. We stay true to this commitment by going the extra mile to fully service and protect you, our customers, and by operating in compliance with the various states’ money transmitter laws.
Please don’t hesitate to contact us at (800) 535-9192 for any questions on this matter. We’re here to help.
Director of Operations, SVP”
It looks like NoteWorld/Meracord has done a great job of explaining the current process. Hats off to them for that. And it looks like they’ve covered their bases during the period of their application. I would not be concerned about that.
I’m not clear on your desire to file bankruptcy at this point. It seems your last debt has been dealt with on some level. I’m not clear on what type of “settlement” you have on that debt since it appears you still need to fund that settlement. in other words, the debt is not extinguished by settlement at this point, or so it appears.
Can you please help clarify why you think bankruptcy might be an option for you in light of the final debt being “settled?”
Please post your responses and follow-up messages to me on this in the comments section below.