What is debt settlement?
Debt settlement companies provide consumers with a method of debt resolution known as debt settlement. Debt settlement is an aggressive method of debt management that depends on the negotiation of mutually agreeable settlements between the consumers and the creditors.
What do the debt settlement company’s fees cover?
The fees paid to debt settlement companies are intended to compensate the company for its efforts and will only be refundable to the extent they have not been deemed to have been earned in the manner described in the Client Agreement. Debt settlement program fees are not being set aside or held in escrow to fund debt settlements.
When does the debt settlement company communicate with my creditors?
Communications with the creditors are handled on a case by case basis. In some instances, creditors may not be contacted until several months after you enroll.
What is the goal of a debt settlement program?
When you enroll into a debt settlement program, the goal you have set is to negotiate mutually agreeable settlements between you and your creditor(s) for payment of certain unsecured debt(s) described as Enrolled Debts. No specific results can be predicted or guaranteed.
What are my responsibilities once I enroll in a debt settlement program?
After saving sufficient funds, you will be responsible for controlling the fund settlements that your debt settlement company will endeavor to negotiate on your behalf. You, and only you, will be in control of all settlement funds. Under no circumstances will your debt settlement company have custody or control of the funds you set aside to fund debt settlements.
Will this adversely affect my credit report?
Indeed, there will be an unfavorable impact on your credit report while in your reimbursement program. All repayment projects will adversely affect your credit report and you ought to be Exceptionally careful of any firm that tells you in actuality.