I Just Signed Up With The Credit Exchange and The Johnson Law Group for Debt Settlement Services. – Shawana

“Dear Steve,

Signed up with the credit exchange a week ago and was told it would NOT have any negative impact on my credit. I’m not behind just wanted to get them paid off at a lower interest rate. I received a “welcome” letter from The Johnson Law Group and it stated my creditors may show my particiation int the program which could affect my score. It’s only around $8000 but some interest rates are 29.99%.

What is your opinion of The Credit Exchange and/or The Johnson Law Group. Can I cancel? What should I do to reduce my debt/interest rates without hurting my credit?



Dear Shawana,

From what other people have said, I have deduced that The Credit Exchange seems to be primarily a marketing group that then refers consumers for debt settlement services to another party to deliver the actual services. In the past these other companies have been the Hess Kennendy Law Firm in Florida and Allegro Law in Alabama, both of which were subsequently shut down by state regulators.

I had never heard about the Johnson law Group until your question. The Johnson Law Group on their site states they are “a multi-state law firm, with offices in Nevada, California, and Florida, and affiliated attorneys in many other states.”

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My radar goes off when I hear similar claims from debt settlement providers because the groups that have been previously shut down offered similar statements and made similar claims. Now, it could just be that the Johnson Law Group is coincidently operating in a fashion that makes it appear to be similar to these groups.

If the Credit Exchange specifically told you that debt settlement would not have any negative impact on your credit. That was a bold faced lie. Not only will it have a negative impact on your credit but it can also result in you getting sued by your creditors and a big tax bill from the IRS. Debt settlement is not a magic wand. It most definitely has consequences.

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If you want to get out of debt and maintain your credit rating or improve it then you need to pay your debt off in full or make at least your regular contractual monthly minimum payments. Anything that is not in compliance with your agreement with the creditor can and will be reported on your credit report.

Regarding cancellation, you should refer to the contract you signed for services. But I would strongly urge you to call the Johnson Law Group and discuss the cancellation process with them. They should be receptive to your call and questions and provide you with a refund since no services have been delivered to you to date.

Please update me on your progress by

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

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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.
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