Debt Negotiation Advice - Debt Settlement using Credit Solutions?

Debt Settlement using Credit Solutions?

I'm currently using Credit Solutions (www.creditsolutions.com) for debt settlement. Seems to be working fine. I haven't yet collected enough money to pay off any of the 4 accounts I have in settlement. One of the accounts (with FIA Card Services/MBNA in the amount of $2000) has been forwarded to a 3rd party collector (Creditors Interchange). This 3rd party collector has begun sending notices (that I have forwarded to Credit Solutions) and calling me talking about "arbitration". Can someone tell me exactly what this means? I'm assuming this is part of the settlement process, but is this something legal that could potentially put me at risk for being sued?? What are my options at this point? Is this just a scare tactic....will they really come after me legally for my measely $2k? I fully intend on going through with the settlement, so technically the account is being "taken care of".

Public Comments

If your credit card contract includes an arbitration clause....this would allow the creditor to go through a 3rd-party mediator. They almost always rule in favor of the credit card company. Your credit card company is under no obligation whatsoever to accept a settlement from "Credit Solutions."
I would not pay anything until I send the collection agency a Debt Validation Letter. The creditor needs to proof me that I owed him the amount he said I owed and not the other way around. I don't like debt settlement. Read this case: Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004. Collection agencies often over charge people and they buy the account from Wall Street for less than a $ 1. Do research on Debt Junk Buyers. Best wishes......
AH! I tried the debt settlement company "Debt Shield" and it was the worst thing I ever did!!!!! You can settle these creditors on your own, promise! I just finished settling my last debt & I had a judgement against me. Discover Fin Svc. sued me, because they didn't like the fact that I signed with the settlement company! I have settled my own credit card AND judgment debts for an average of 50% of the balance. If you have the $, don't give it to this company! They can't do ANYTHING for you if the company decides to take it to court.....and they WILL....trust me! I have been all over the internet doing searches on tips and tricks for dealing with these companies. There is a lot of great information out there, just search for by whatever info pertains to your situation........ex: Credit card/Coll Agency name. Go into some blogs on Debt Settlement companies and you'll find there are many people who agree with me. I cancelled Debt Shield after 1 year and they didn't do anything for me, but they charged me $1200.00.......My first 2 monthly pymnts were ALL their fee.....Please get out while you can, it'll save your credit report from being destroyed. Don't forget that you can also negotiate how they report these accts to you credit report, if they tell you they can't control it-THEY'RE LYING! They will listen to as much as you want to tell them, but don't give them any ammo (ex: trying to fix credit to buy a house). "This is an attempt to collect a debt. Any information obtained, will be used for this purpose." If they don't speak these words before you discuss your acct., they are violating your rights and you should seek representation. I had my "Financial Advisor" represent me and it was all I needed to get some results. I didn't tell them he was also my mortgage broker, and I am desperate to fix my credit report....They wouldn't have EVER settled for 50% if they knew I was desperate! Do what you have to do-but avoid emotional outbursts. Tell them your $ will be accepted by another creditor of yours if they aren't willing to consider a fair settlement. Works WONDERS! Be open to all advise, and before you know it-you'll have found your own solution. GOOD LUCK my friend! I hope it works out for you!
As Slimick stated, no credit card company has to accept any agreements or arrangements made by those so called "credit solution" companies. Too many people are fooled into thinking that credit consolidation or credit consumer protection companies are the answer to their problems. The only way to get out of debt it to stop using the accounts, pay off every thing you can (even if you have to liquidate any assets, or make more money). You might want to check out this link to find out more about Creditors Interchange, they are one of the Bud Hibbs Notorious bottom feeders and scammers. http://www.budhibbs.com/debtcollectorpages/creditors_interchange.htm This may not be the answer your looking for, but it will give you some info on what to look for. Here are also a few tips from the FTC regarding credit repair agencies. Avoid credit repair agencies that charge a fee to improve your FICO score by removing negative, but accurate, information from your credit reports. No one can force credit reporting agencies or lenders to remove accurate information from a credit report. Credit repair companies often take your money without delivering what they promise, or provide only temporary improvements of your score, sometimes by removing accurate information that will reappear later. LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
Arbitration is there fancy word for "Settlement". The key here is if you do receive a notice that they are seeking a judgment in court MAKE SURE you appear to challenge the validity of the debt. I have at your request a validation letter that you can arm yourself with the will most likely get you off the hook. This collection companies in many cases are not legally able to collect all that they are trying to collect plus fees (since they paid literally pennies on the dollar for the debt) do to state statutes as well as licensing. I hope that you are not attempting to pay off debt that you are not libel for?