What is the name of your state? KY
I entered a debt settlement program in August 2002 and was given a monthly payment and a term of four years. The agreement stated the plan may take less time or it may take more time, but I recently reviewed my situation and it looks as though it will take me at least another year (to August 2007) to settle all of the debts in this "plan". I could live with an estimate being off by a few months, but to be off by greater than 25% seems very questionable. I think the reason for this is that two of my larger creditors garnished my wages for the full amount they were owed. I currently am not being garnished by any of the remaining creditors listed as part of my plan. I think I already know the answers to these questions, but feel it necessary to ask nonetheless. Is it possible I could have recourse against the debt settlement organization, due to the grossly over-estimated efficacy of their ability to settle my debts? Even if there is no recourse available to me, should I continue making the monthly payments with this organization (they have an interest in settling my remaining accounts because they get a fee equal to 25% of the amount of debt they reduce)? All other fees have been paid to the debt settlement organization other than nominal monthly fees. At five years total repayment time, am I running up against any credit card industry established "time to repay" prohibition? In other words, is there an established maximum amount of time allowed for making debt payments under these settlement programs? Oh, and just for the record, the amount of debt remaining to be paid is substantial.
I entered a debt settlement program in August 2002 and was given a monthly payment and a term of four years. The agreement stated the plan may take less time or it may take more time, but I recently reviewed my situation and it looks as though it will take me at least another year (to August 2007) to settle all of the debts in this "plan". I could live with an estimate being off by a few months, but to be off by greater than 25% seems very questionable. I think the reason for this is that two of my larger creditors garnished my wages for the full amount they were owed. I currently am not being garnished by any of the remaining creditors listed as part of my plan. I think I already know the answers to these questions, but feel it necessary to ask nonetheless. Is it possible I could have recourse against the debt settlement organization, due to the grossly over-estimated efficacy of their ability to settle my debts? Even if there is no recourse available to me, should I continue making the monthly payments with this organization (they have an interest in settling my remaining accounts because they get a fee equal to 25% of the amount of debt they reduce)? All other fees have been paid to the debt settlement organization other than nominal monthly fees. At five years total repayment time, am I running up against any credit card industry established "time to repay" prohibition? In other words, is there an established maximum amount of time allowed for making debt payments under these settlement programs? Oh, and just for the record, the amount of debt remaining to be paid is substantial.