Many Americans today are in trouble with creditors, mortgages, or both. Some of these Americans ignored statements, ignored late notices, and now are being hit with the ugliness of a commission-paid collector from either a collection department within their credit company or a collections agency.
There are also many Americans that knew they could only make a partial payment or no payment at all, and went to their creditor to ask for help. If not help, maybe some compassion or understanding. When I asked Chase for a little extension on my due date, the door was slammed in my face. I know I am not alone.
The number one complaint of debtors delinquent on one or more accounts are the phone calls from creditors. The calls span from morning to night and whether they're courteous or threatening depends on who is on the other end of the line.
My number one pet peeve as a employee in the industry are people who believe everything a collector on the end of the phone line says.
If Johnny Vacuum Salesman made commission and really needed a paycheck, wouldn't he tell you that vacuum could work magic? He'd tell you that vacuum would suck 99.99% of the dirt and filth out of your carpet fiber. He'd tell you the hypoallergenic filter sucked 99.99% of all allergens right out of the air in your home. Ultimately it would be up to you whether you believed Johnny Vacuum was telling you the truth or exaggerating the real abilities of the vacuum.
Now let's relate that to a commission-paid collector for the credit companies.
If Tommy Callsalot calls you from [credit company here] and states that your $2500 credit card account is 60 days late, why wouldn't Tommy Callsalot tell you ANYTHING short of threats of violence to earn his commission?
Tommy Callsalot has a wife and kids at home afterall. And maybe the missus is out of work. Maybe little Bobby or Susie has a serious case of the flu and needs to go to the doctor. Maybe Tommy Callsalot can't get to work because he's having car trouble. Just like you and I, Tommy Callsalot is a human being with loved ones and survival needs. But it just so happens that Tommy Callsalot's survival needs are met with a paycheck from XYZ credit company by squeezing payments out of delinquent debtors.
I cannot stress enough the importance of KNOWING YOUR RIGHTS!
We tell our children their whole lives that education will get them anywhere and everywhere they want to be in life. When did that change? When did that exclude credit card holders? If you are in the right or the wrong of any situation, you should know your rights. Educate yourself so that you know you have options. Being in a financial situation can be stressful, burdensome, and downright maddening. But knowing your rights and your options could LITERALLY SET YOU FREE!
2 comments:
Hi Debbie,
I'm 56 and currently going through a debt settlement process with Enlightened Debt Solutions, settlement company. I found a website
www.debtreliefcompanies.net
who helped me choose a supposedly reputable debt settlement company who they investigate.
That's all they do. They only provide the name of the company.
We have paid Enlightened Debt Settlement only one payment to them since Nov 2008. Due to property taxes and medical insurance coming due, we called them to skip our december payment.
I don't know who to believe. The case manager for me or the "Prelegal" department for BOA Johnnie Callsalot.
My wife and I are currently $40,000 in debt and 99% is credit card with 17 cards between us. Some of that credit card debt is medical bills that I paid using the cards.
Bank of America says they will not work with "Enlightened" since they are a "for profit" company, but they told me they will work with me directly. Between my wife and I we have 2 credit cards with the largest portion of our cc debt at Bank Of America. They both are 2 payments behind, and we also have an auto loan with them that is current.
I just have to pay or get caught up on the past due 2 payments and they will reduce my debt. Johnnie Callsalot is a prelegal representative for BOA. He thinks BOA would settle direct with me for 50% of debt but it has to be paid off in 3 payments.
There is no way, unless I get money out from my 401K. I have started the paperwork process at least to get a withdrawal going but I don't have enough money in it to settle because of the economy.
Earlier this summer, I went on social security disability and my wife age 54 had to take a large pay cut to teach at a closer school to home.
I am almost certain I would qualify for bankruptcy chap 7, but I got sold on the debt settlement company and don't know if they will help or not. Johnnie Callsalot told me that most people windup quitting their debt settlement company and then file bankruptcy anyway. This is usually after they are sued or pay $1000.00 of dollars and realize that the settlement company isn't doing anything for them except taking their fees up front.
Debt settlement companies know this and expect you to quit after you pay their fees up front. Their contract allows them to not have to refund that money if you quit. That's how they earn their money. He told me that only 2% of the debt settlement companies clients actually are successful in negotiations. He gave me a website www.smartmoney.com which has an article about debt settlement companies.
Question: How do I know my debt settlement company is legitimate or successful?
Should I just go ahead and file bankruptcy? I know the attorney's will recommend that I should.
Justafact, I posted a new entry in response to your comment. I hope you found some of that information helpful and feel free to post again.
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