CNBC produced a story by Trish Regan that was full of misleading statements and came across that debt settlement was not a problem, without ever mentioning the tax consequences or that debt settlement companies are under investigation.
The story claims that an NFCC agency, ClearPoint Financial Solutions was able to get Providian to settle the debt for less. There is no mention of debt settlement services on the ClearPoint website.
What makes me really scratch my head on this story is that Providian was purchased by Washington Mutual who was then taken over by the government and then sold to JPMorgan Chase. Ironically, the WaMu acquisition of Providian is claimed to have been the first step in the downfall and failure of Washington Mutual.
I seriously doubt with all the moving around of these accounts that the original credit agreements are anywhere to be had and that the creditor realizes that taking some money on this portfolio of debt is better than admitting that a lot of it isn’t even collectible anymore.
The story does mention, in passing, that these actions will hurt your credit report and credit score. Marisa Ruiz, the consumer in the story, also says that she now avoids credit and tries to pay cash for everything. Hopefully someone has educated Marisa that if she wants to improve her credit score she will need to get back into the credit game and start having good information reported about her again. Overall, I’d give the story a C- and not worthy to appear on network television.