Should a person use American Debt Arbitration to settle a credit card debt?
Posted November 4th, 2009 in Debt Settlement.
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Read complaints about this company:
http://www.ripoffreport.com/reports/0/353/RipOff0353747.htm
http://www.ripoffreport.com/reports/0/239/RipOff0239807.htm
Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement….This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator….this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances…You can never predict how your creditors will respond to the deliberate defaulting of your accounts…they might settle at 50%…or they might serve you a summons, take you to court…and if they win, you could be looking at wage garnishment.
None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.
http://online.wsj.com/article/SB122394458494631223.html
November 4th, 2009 at 9:25 pmhttp://podcast.mktw.net/wsj/audio/20081013/pod-wsjlaise/pod-wsjlaise.mp3
No
November 4th, 2009 at 9:25 pmWhy do you want to pay someone to do something you can handle yourself? You are not going to get some magic pill or magic settlement from paying these guys.
If your debt is out of control, go to a NOT for profit credit counseling service. They will help you negotiate with your creditors, get you on a budget, and get your bills paid off, without charging you a dime!
you can do that yourself. Contact the company and explain your situation and what you can do. Try to work out a deal that will protect your credit as well. I wouldn’t use a third party for anything like that. In most states arbitration is binding and could put you in a worse position than you are now. Be careful and good luck.
November 4th, 2009 at 9:25 pmNo. They will rip you off. They charge a very high upfront fee, they will tell you to stop paying your creditors, your accounts will go into default, and you will get sued, all the while ADA will do nothing for you.
November 4th, 2009 at 9:25 pm