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Don't use "debt settlement!"


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Posted by mk_378 (128.173.37.137) on April 29, 2004 at 17:02:38:

In Reply to: Help! I'm beng sued by Citibank! posted by Regretful Spending on April 29, 2004 at 00:48:33:

"Debt settlement" is a scam. These companies take a "head in the sand" approach with creditors, and collect money from the debtor monthly. Unlike a CCCS deal (which I don't recommend either), the creditors are not getting paid, and no agreement has been made to reduce or forgive the payments. Thus the creditors go into full-on collections mode with letters, phone calls and yes, lawsuits. The "debt settlement" company cannot protect against these actions. They just take the debtor's money every month, ostensibly saving it up to offer a settlement to the creditors sometime in the future. If they even do that, there will be buku "fees" involved, and of course NO REFUNDS. Once a debt is more than a year old, almost any OC will settle for 50% (remember though that is 50% of an inflated balance including a year's interest, late fees and overlimit fees), and CA's for even less.

Any debtor can do this for themselves, and many here have. Simply don't pay creditors, ignore collection phone calls, and quietly save money in a shoe box or other undisclosed location. If sued, use the money to make a settlement and avoid a judgement. There are no exhorbitant fees associated with the Bank of Shoe Box unless your wife finds it.

If you are still paying the debt settlement company, stop and demand a refund. You may need to get the lawyer you hired to deal with Citibank to act agains them to get your money back, I'm sure it will not be easy.


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