|
Credit-negotiation
company lies, destroys credit
By Bankrate.com
 Beware
of promises from credit negotiation services, say our readers:
Trusted friend or debtly fiend?
My husband and I took out a home equity loan to pay off our
credit card debt. Our loan didn't cover all our debt, so a friend
of mine who worked for a credit-negotiation company offered to help.
She told us all the creditors would be notified, negotiations
to pay off our balances would begin, the cards would be paid and
our credit would improve. I sent a check to the negotiation company
to hold in escrow until the settlement was due.
In May, I was told that all cards were paid and the
debt settled.
I was so happy -- until one day, I received a call
from X Card, and was asked, "Do you realize how delinquent
your account is?" My mouth dropped. I replied, "There
must be some mistake, this account was paid and closed back in May."
The representative said their records showed the last
payment from us was in January. Turns out my friend at the credit
negotiation firm didn't really settle our debts as agreed. She claimed
that we needed to pay an additional $70 to settle but she didn't
have the heart to tell me.
I was under the impression that everyone was paid
and happy, and then I found out that one of the largest corporations
was holding out for a lousy $70 and destroying my credit in the
process.
Credit counseling services doesn't pay bills
I used X Credit Counseling Service and
ended up further in debt because:
- They didn't use all the money they required to
pay my debts.
- They confused two debts with the same company and
closed one instead of the other and didn't pay on one of them
at all.
- They paid inconsistent amounts.
- On the ones they paid nothing for three months
I was charged late fees, which caused over-limit fees that brought
the balance up twice what it was to begin with!
- Some of the credit card companies didn't reduce
the APRs because of this!
Next time, I'll negotiate payments
myself!
-- Posted: Oct. 25, 2002
|
