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85% of Debt Settlement Companies May Be Closing Soon and Taking Your Money With Them

There is no doubt that the workshops and hearings by the Federal Trade Commission (FTC) are going to result in changes that will significantly impact the debt settlement industry. The FTC has been carefully looking into the industry and is disgusted with the actions of many companies. These would be the companies that charge large … Read more

Is It Better to Go Bankrupt or Settle My Debt With 401(k) Money? – Lynn

“Dear Steve, Hi Steve, first let me tell you what agreat comfort you are to many people. Honest advice is hard to find. I have written you before and value your opinion. If there is a way to settle debt with the creditor for a decent amount, is it not better to do that than … Read more

Is It True My Creditor Might Take Less Than The Full Balance as Payment in Full? – Larry

“Dear Steve, I have credit card debt, can afford more than the minimum payments but not the entire balance. Is there truth to the fact that issuers will accept a lower amount as a balance payoff? And is there any formula to this? e.g., would Chase take 2k in one payment to settle a 5k … Read more

Why Won’t Credit Cards Settle With Me But Will Settle With a Debt Settlement Company?

A questions I get asked from time-to-time is “Why won’t credit cards settle with me but will settle with a debt settlement company?” Good question. And while some settlement company may proclaim it is their contacts or wonderful talent, it is often just luck. I asked Michael Bovee of the Consumer Recovery Network to provide … Read more

Freedom Debt Told Me Not to Speak to My Creditor. – Karen

“Dear Steve, I owe $26,000 in unsecured credit card debt, plus $6,000 in medical bills from 2008 and 2009. 6 months ago, I turned the $26,000 over to Freedom Debt. Of course, they are taking their fee out first, they have negotiated and settled one $1,700 account for about half. The last payment goes out … Read more

Florida Attorney General Wants Debt Settlement Companies to Put Up Before You Pay Up

Florida Attorney General Bill McCollum today announced that he has co-sponsored a letter to the Federal Trade Commission (FTC), asking it to amend a federal rule that would require debt relief service companies to provide services before collecting any fees. The letter was also sponsored by the Attorneys General of Illinois, Maryland, and Washington. Debt … Read more

40 States Band Together to Regulate Debt Settlement Companies

The attorneys general of Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wyoming have … Read more

I Signed Up For Debt Settlement Services and Got Sued Anyway. – Dog

“Dear Steve, I signed with the credit exchange and the jhonson law group and they let me be sued for 8000 dollars because the law group did nothing. My garnishment is for 168 a week Dog” Dear Dog, Recently I reviewed the client agreement for a different debt settlement company. But I think if you … Read more

Credit Solutions of America and American Debt Arbitration, Debt Settlement Companies, Are Sued by State of Florida

Florida Attorney General Bill McCollum today announced his office has filed two lawsuits on behalf of Florida consumers against five debt settlement-related companies. According to the Attorney General’s lawsuits, the businesses promised consumers they could pay off their debts for a fraction of the amount owed, but instead collected large up-front fees and left customers … Read more

A Review of the Everest Debt Solutions Debt Settlement Client Agreement

Recently I wrote about a debt settlement company called Everest Debt Solutions here and here. I managed to get my hands on one of their client agreements so I wanted to review it for you to help you understand what it all means to the best of my ability. I think you’ll find some eyeopening … Read more

The Curse of the Hess Kennedy Debt Settlement Firm Lives On

In a twisted matter of irony the law firm that was acting as a receiver for the Hess Kennedy debt settlement company that was closed down in Florida, has been closed down. Law.com reported that Lewis B. Freeman & Partners went to court in Florida on Friday and put the firm out of business. This … Read more