Debt Settlement Scoundrels

And the beat goes on…..

How long will it be until Federal regulation appropriately addresses these problems?  Senator Schumer got the ball rolling on April with S.3264 but it didn’t get passed. Hopefully legislation will be under way during the Fall session. In the meantime, we can continue to raise awareness.
Here are a few indicators that change is in the air.
?

Debt Settlement Firms Peddle Relief But Actually Put Debtors In Deeper Hole

“State attorneys general from New York to California and consumer watchdogs, such as the Better Business Bureau, say that debt settlement firms”™ proceeds come at the direct expense of financially troubled Americans who are being swindled out of their last dollars with dubious promises, The New York Times has reported.” ….read more HERE
?

Be wary of promises from debt relief companies

Millions of Americans are drowning in debt. If you believe the ads “” with their bold claims of success “” a debt relief company will help you pay off your bills for pennies on the dollar.
The ads are everywhere:

  • “Be debt free in as little as 24-48 months!”
  • “Erase debts 50 to 70 percent or more!”
  • “Legally get debt down to zero.”

It sounds so easy……read more HERE
?

Stay focused. Stay afloat. Wealth and freedom are in your future.
Jonathan

Debt Settlement Reform

And the trend continues….
In the coming months, we will likely see more regulation for debt settlement companies.  You can be sure that those companies speaking the loudest against the regulations are most certainly the most egregious debt settlement companies scamming the consumer.
Here are a few articles..

How the Financial Reform Bill Could Affect Debt Settlement

Senator Charles Schumer (D-NY), who previously spearheaded changes in credit card disclosures, is again trying to crack down on abuses in the credit industry. Recently, he introduced The Debt Settlement Consumer Protection Act as an amendment to S. 3217: Restoring American Financial Stability Act of 2010, a.k.a. the “financial reform bill.”
Some predict this legislation could be voted on very soon. We’ll be watching.
The DSCPA would regulate the debt settlement (or “debt negotiation”) industry in two key ways:……to read more click HERE

Debt settlement companies face new rules in Indiana

In a piece for legal information website Lexology.com, law firm Loeb & Loeb LLP said that starting on July 1, debt settlement companies will have to get a $25,000 surety bond. They will also have to present a copy of the bond to the state’s attorney general’s office while making disclosures to consumers in the Hoosier State……….to read more click HERE

Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

A Debt Settlement Miracle – Part 2

If you are new to the blog, click HERE to start at the beginning of my story.
POST #31?
Per my conversation with Billy, I called on March 2nd to speak with his manager, Bucky.
While on hold to talk with Bucky, I knew this was the final moment. My last move. Everything I had done for the last 10 weeks had lead to this.
When Bucky got on the phone, I took a deep breath and for the umpteenth time told my story. He listened. Asked all the same questions Billy had asked. I kept my story straight. Explained where the money was coming from and why this was my best offer.
Bucky was very considerate and calm during the call and seemed to really hear what I was saying. He said he would talk to the VP who gets out of a meeting in 2 hours. I thanked him for his time and consideration on behalf of myself and my family. Every time I said those words, I really did get choked up. Even though the debt settlement process does require some manipulation and hard-nosed negotiation, there was a simple truth behind all of this:

I was doing all of this for my family.

?
?
And that was it….my last effort. If Bucky declined my offer, there would be no other option than to scrounge up another $1300 and settle for $9800. Not sure where the dough would come from.
And then…..four hours later my phone rang.
Was this the call? Was this the “DAY”?
It was Billy. I could tell from his tone of voice that he had good news.

” I am happy to say that your offer has been accepted.

Did you hear me?

They said yes!”

I was ecstatic, a bit speechless. I thanked him for his tenacity and sympathy. We both acknowledged that in the past 2 days I accomplished more than I had in the last 2 months. True to form, Billy offered an honest piece of insight. He said he likes working in Recovery because he can really help people.
He really helped me. His willingness to let me speak to his supervisors and managers allowed me to get the deal I needed. Unlike so many reps, he got out of the way. Yes, he was patient and attentive, but his most important role was to NOT interfere with my personal momentum.
He kept me on the phone as we prepped the letter, then faxed it to me. When we got off the phone, I screamed for joy as loud as I could. I ran in to tell my wife! It was a beautiful embrace. We looked into each other’s eyes and she said, “You did it, baby!”
Nope, we did it.
If not for the love of my family, I never would have spent the hundreds of hours of time and energy to go through this debt settlement process.
Here are the final stats:

  • $141,655.56 worth of debt settled for $40,449.11.

  • 28% or 28 cents on the dollar.

This is the end of my deb settlement story, but not the end of my financial recovery story. There are still 3 things I need to do:

  • Loan mod on my 1st mortgage.

  • Settle or loan mod my 2nd mortgage.

  • Build personal wealth and financial security.

More to come…….
Stay tuned and stay afloat. Wealth and freedom are in your future.
Jonathan

Enhanced by Zemanta

A Debt Settlement Miracle – Part 1

If you are new to the blog, click HERE to start at the beginning of my story.
POST #30?

Mafia spaghetti with seafood and tomato sauce

How do we create an airtight counter offer?  An offer they can’t refuse….not because of the threat of a bloody horse head or anything “silly” like that. More like an offer where the numbers make so much sense that they are realistically un-movable.
Here’s where we stood:

  • Their offer:            $9808

  • My current offer:  $7500

  • My goal:                $8600

After several conversations with my CRN coach, we came up with the silver bullet.
My current offer was $7500. If I deferred March’s car payment of $514, that would bring us to $8014 – payable today.  Then I make an additional payment 30 days from now by deferring my April car payment of $514. Total offer: $8528. I can’t go beyond that amount because:

  • I have already borrowed from EVERYONE I could.

  • I have deferred as many other bills as possible.

  • I can’t defer my mortgage because that would jeopardize the loan mod process.

  • If it weren’t for the loan mod potential, I would just declare bankruptcy and fore-go all of this effort.

NYC - Queens - LIC: 5 Pointz - Roadrunner and ...

There were so many aspects about this offer that made it genius – in fact it was super genius.
I can say this without bragging because I didn’t come up with it –  my CRN coach did. Obviously not her first rodeo. It was exactly this type of creative bargaining that can make or break a deal.
I called Billy in Recovery and made this counter offer. He was impressed by our creativity and resolve, though not AT ALL confident.
He went to the sup and very quickly came back with the same $9808.00 offer from yesterday.
I thanked him for his time and reiterated my intention for doing all of this was 3 fold:

  • To shield my family from anymore hardships.

  • Hold on to my house.

  • Offer a good faith settlement to the bank.

He was again sympathetic.  I asked him to bypass his sup and PLEASE talk to his manager. He agreed.
Two hours later, he called me back to say the manager had denied my offer.
It seemed like I had played my last card. What was left to do?
Then it hit me:

  • Maybe Billy’s compassion for me was a direct result of how I was telling the story.

  • Maybe if I spoke directly with the manager he would “get it” too?

Lucky for me, Billy agreed to make that happen.
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

Enhanced by Zemanta

Trying To Avoid Charge Off

If you are new to the blog, click HERE to start at the beginning of my story.
POST #28?
I was content to let my account charge off at the end of February and go to the Recovery Department until my CRN coach tried to talk me out of it.
There was a complication that she wanted to avoid. Very soon, I was going to apply for a loan mod on my house (yes my story continues!). She thought it might be risky to play chicken with the bank this one last time. There were for 2 reasons:

thunderbirds
Image by Blondie5000 via Flickr
  • If I got sued by my VISA account, it would destroy my chances at a loan mod.

  • My mortgage bank would be less likely to grant a loan mod if I had outstanding unsecured debt.

With the loan mod on deck, her advice was to not screw around. Let’s land this last deal and move on.
I trusted CRN implicitly so I went along with the advice. I called the VISA department 6 times between 2/25-2/28 in an effort to settle. My CRN rep even decided to step in and make the calls for me. This would end up costing me a bit more money if she landed the deal, but it would be worth it.
We called on Friday, Saturday, Sunday – multiple times each day. We re-told the story over and over. We spoke with call centers in Iowa and Oregon. We weathered threats of judgments and law suits.

PEARL HARBOR, Hawaii (May 4, 2007) - Chief Min...
Image via Wikipedia

Unfortunately, nothing worked. The VISA collections department was firm. And when I say firm, I mean” firm like the buttocks of a body builder” firm.
THEY DID NOT BUDGE.
After our last ditch effort failed on Sunday 2/28, we resolved ourselves to charge off. But not all was lost.
On Sunday evening 2/28 we called the Recovery Department. Apparently, the account would be there on Monday morning. We wanted to get a head start so we called them. We told the rep that our prior offers were for $5000, but I put my ego aside and asked one more friend to loan me $2500. This would make our total offer $7500. The rep was impressed with my tenacity. He was sympathetic, smart and straight forward. He listened.
From his point of view it was a long shot – a BIG long shot. But he read through my notes and could tell I was sincere and up front. As long as the account hit his system in the morning, he agreed to bring it to his supervisor first thing.
We could only pray that the account would appear in his computer the next day and NOT end up in purgatory.
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

Reblog this post [with Zemanta]

VISA Settlement Not In Sight

If you are new to the blog, click HERE to start at the beginning of my story.
POST #27
?

A woman giving birth on a birth chair, from a ...
Image via Wikipedia

Here we are, 2 weeks into 2010 and I am still flying high from settling over $100K of debt.  It is hard to describe the feeling, but I imagine the relief is equivalent to that of my wife’s when she pushed out our 9 pound son.
Now on to the VISA.
I was prepared for the VISA to be a bit different. First clue was their charge-off schedule was much longer than the lines of credit. I am not exactly sure how they do their math, but they wouldn’t have done well in my 5th grade math class.
Here are a few ways the VISA differs from the Lines of Credit:

  • Jacked up my APR to 29.9% after I was 30 days late.

  • Charge off schedule was much longer.

  • Not at all interested in negotiating until we got to the recovery department.

  • More aggressive phone reps.

1/11/10
I called the the VISA department to make another offer. Current balance was $28K, with a whopping $2500 of fees, penalties and interest.  This was 5 times the amount of excessive charges I experienced on my Lines of Credit.  Scoundrels!
I had been calling them all along, low balling, and they had stone-called me at 50% -$14K.

Ginsu!
Image by Mat Honan via Flickr

Today was no different. The rep wanted 50% divided into 3 “easy” payments of $4671.36.  I wanted to ask if it came with a Ginsu knife set.
Up until now, my offers had been for $7500. However, since I had used some of my savings for the other settlements, I decided to lower my offer to reflect that. In other words, since Visa didn’t play ball (but the Line of Credit department did): they lost out on getting more of my available funds!
This time I offered $5000.  The rep just about laughed at me. My notes showed my prior offers of $7500 had been declined so he knew my offer of $5000 would not fly. I explained that I do have $7500 (in borrowed money) but $2500 is now spoken for with my 5 payments of $500 to the LOC settlement I recently landed.
He said he would submit it, but didn’t look promising. Then he mentioned that my account was 146 days passed due. It was “subject to charge” off tomorrow.
You are probably wondering what “subject to charge off” means. I did, too, so I asked.
Upshot: NOTHING.
It was a scare tactic designed to get a payment out of me. Technically, the bank can charge off the account any time after 90 days   – and maybe even earlier.  So really, it had had been “subject to charge off” for a while now!
We ended the call.
It went on like this for 3 weeks. I’d call, offer $5k, they’d say no but try to get a payment. I’d ask for a supervisor. One wasn’t available, but they’d have him call me back. No one called, so I called back in a few days and started the process again.
We were back in junior high school playing hard-to-get with each other. Everyone knew where this was headed…..yup: the Recovery Department – where the real deals are had.
Again, it hurts your credit. But since I already had 3 accounts hit the Recovery Department, I figured I might as well go 4 for 4 and get a great settlement.
By the way, charge off didn’t happen until the end of February – about 50 days after that rep threatened me that it was “subject to charge off”
Scoundrels.
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

Reblog this post [with Zemanta]

Debt Settlement – The Gory Details

POST # 1
You are about to read a very personal story about me.
I am a happily married, 40 year-old father of two precious little kids. I live in Los Angeles, California and my name is Jonathan Grossman.  This sounds like an introduction to an AA meeting.  In some ways it is!
Back in 2004, I was making a great living as a TV composer and enjoying the high life with my wife. By 2006, we had our first child and I was unemployed, living off savings and hoping things would turn around. By 2009, I had 2 kids, went through all of my savings and managed to accumulate $130,000 in debt. Things were not getting better and I had to make a move.
This story is a lot of things. First off, it’s true. But even more than that, it is a brutal examination of the American economy from the point of view of the consumer. In many ways, I am the typical Hollywood story combined with the typical real estate boom home buyer. I was irresponsible and wreck-less and the financial climate was my gracious enabler.
This story will tell the tale of how I got myself into this financial mess, and I how I chose to get myself out of it.  For the record, I take 100% responsibility for creating all of this debt. I am not for a second blaming anyone but myself!
The story has a horrific beginning, but a great ending. Without further delay, here are some details.
In July 2009 this is where I stood:

→$104,000 in unsecured personal lines of credit

→$26,000 in credit card debt

  • Owned, or rather “owed”, my home which was fully financed at $880,000 and it was underwater.

→If I sold it, I wouldn’t even be able to pay off my mortgage.

  • Monthly bills:                 $18,000
  • Monthly net income:    $12,500

→Monthly deficit:  $6,500

  • I was drawing from my personal lines of credit to help pay the bills each month.
  • I was drawing from those very same lines of credit to make the minimum payments on them each month.
  • I had 2-3 more months before the credit ran out…MAXIMUM DEBT VELOCITY.

?

HERE WERE MY FEARS!

  • Foreclose on my house.
  • Feel humiliated with my family and friends.
  • Declare bankruptcy.
  • Look into the sweet little eyes of my 4 year old son and explain why we have to move from our home, leave pre-school, make new friends.
  • Admit to my wife that I had let the family down.
  • Admit to myself that I was a failure.

?

HOW DID I LET IT GET THIS BAD?

NYC: National Debt Clock

I’ll tell you.

  • I didn’t save enough for a rainy day.
  • I kept hoping things would turn around.
  • I ignored the obvious downward spiral.
  • Once I started to fall into the pit, I passed the threshold of caring.

I LET MYSELF GO DEEPER BY SAYING “I AM ALREADY $100,000 IN DEBT. WHAT’S ANOTHER $5,000 AT THIS POINT?”
Here’s my story of how I got into $130,000 in debt and how I am getting myself out of it. I am not yet done by the way.

BIG DISCLAIMER!!!!

Let me be clear up front.  I am not a debt settlement counselor. I do not work for any of the debt settlement companies. I do not profess to be an expert or in any way imply that you are guaranteed to have the same results I am having.
Things that can or will happen if you choose Debt Settlement include:

  • A lot of HARD WORK.
  • A lot of time, focus and resilience.
  • Rhino skin and tenacity.
  • You MIGHT be threatened with law suits.
  • You will have creditors calling you all the time.
  • Your credit will suffer.
  • You MIGHT have to pay taxes on the amount of debt that the bank forgives.

It is NOT easy. As I just said, you need rhino skin and tenacity. But, if you are willing to do your homework, you may find that debt settlement is the right road for you.
I did A LOT of research and ended up using a debt settlement company that was extraordinary. I will wholeheartedly recommend them because I believe they are fair, supremely skilled and a true consumer advocate. My intention is to give back to the very company that gave me so much.

Here’s the deal about this blog:

  • Take what is useful.
  • Toss what isn’t.
  • Call my recommended company if you are inclined…..BUT…..do your research. Call a dozen of them.
  • You may discover what I discovered.
  • There are only a few debt settlement companies that are really there to help.

The one I used, Consumer Recovery Network, was incredible for me. I imagine they could help you as well. Throughout this blog you will notice that I keep mentioning Consumer Recovery Network (CRN). They are the only company that I have worked with and therefore the only company with which I have first-hand experience.
As I said, I highly recommend them. Definitely call them to see if they can help you the way they helped me.

But please, please, please. DO YOUR RESEARCH!
So here it goes…..my debt settlement story.
Stay tuned, stay afloat. WEALTH AND FREEDOM ARE IN YOUR FUTURE!

Reblog this post [with Zemanta]