Neg. Agency, Collections, Confusions....Please help me

[Poisson]

What is the name of your state? Now CA, recently moved from UT

Okay I am over my head.

Here’s the situation. Long story short, I was over my head in debt. I had about $13,000 that I was trying to fix. I thought that a negotiation company would work. They promised results and whatever. Anyway, I guess I just didn’t think it through enough and now I have collection agencies calling me. The negotiation company told me not to talk to them, but I did. Here’s why.

1. The Negotiation Company looks like they won’t start negotiating for about a year, not until the fees are paid. After that, I should have everything solved in 24 months, that’s three years from now. The collection agencies, I talked to 2 for three of my cards, offered me an option to pay them off and actually, in about 15 to 18 months I will have these three cards taken care of.

2. I feel more honest doing it this way. I was over my head with the interest rates and thought that was my only option to cancel out and use a negotiation process, however now I am still paying what I owe in a practical manner.

I have one more card I have to work on.

I don’t know what to do now. I am going to stick with the arrangements that I have made, but the negotiation company told me not to talk to creditors, but I felt that if I didn’t I would kill my credit and at this point the collectors/creditors said that my credit isn’t too bad and the account is still through the credit card company and hasn’t gone to collections (on my credit report). Also, I have a fear of my mortgage or other things that could be taken. But I agreed to pay the negotiation company. So far I have paid them about $800 and owe them for the rest of the year ($1000 about). What are my rights with a company like this? What sort of refund, if any, can I get? Do they have any legal rights against me, and I them.

I have so many questions and just don’t know what the answers are. Any help and counsel is appreciated?

(p.s. do I need counsel, I don’t have the money to pay for it, but wondered if that is an extent I need to go)

 

[jazzy13]

Breath in, breath out, you're on the right path!

You are doing great! Your realizations that the debt negotiating company cannot fulfill it's promises to you is your biggest asset! Fortunatly for you, the California Attorney general is very interested in situations such as yours. Go to FTC.com There you will see that The Federal Trade Commission has sued and stopped the practices of a major so-called debt negotiating company for just these same issues. Matter a fact, if you read their formal complaint against National Consumer Council aka Solidum, Financial Rescue and many other subsideraries, you will see that currently consumers who paid money into these companies must now access a receivership site and are being refunded their money. 250 employess at Solidum were sent home and their doors locked and closed for buisness due to MISLEADING consumers and taking their money. Since you desitre to improve your situation and not run or hide from paying your obligations i recommend that you continue to work directly with your creditors since they are in fact working with you. Contracry to what many may believe- when a consumer signs a power of attorney with a debt comapny it authorizes NOT obligates your creditor to communicate with that company. Immediatley stop paying into the sham debt company and pay your debts yourself. these comapnies supposed contracts will never hold up in a court of law even though they would like the consumer to believe so. Make a written demand for your money back (RRR). If they give you any flap - ask them, to produce a contract between them and the creditors you listed with them that makes them an authorized negotiating agent for the creditors they assured you would settle your debts for much reduced amounts. They can't ! Because your creditors either still have ownership or have retained oa cloolection agency or law firm as their authorized agent.! read the FTC complaint and you will gain awealth of knowledge and be able to file your own complaint with the FTC and CA State Attorney General's office if they dont return your $.