While decorating my Christmas tree yesterday, I was listening to the radio. One of the commercials was for a debt settlement company advertising that credit card companies don’t want consumers to know they have a “right” to settle their credit card debts. My ears perked up and my mouth dropped open. Did I hear the commercial correctly? Did they say “right”? As the word “right” kept playing in my head, I became angry. This debt settlement company is clearly misrepresenting its’ services. While many credit card companies or bill collectors often will agree to settle a debt, they are not required to do so. Nor am I aware of any law which requires a creditor to settle a debt with a consumer. Be wary of any offers that sound too good to be true.
Debt settlement company advertises you have a "Right" to settle your credit card debts. WRONG!
Related Posts
-
Should You Borrow from Your 401k Plan to Settle Credit Card Debt?
by Dana Wilkinson, Attorney at Law
A client asked me recently whether he should borrow from his 401k plan to settle his credit card debts, or file bankruptcy. Like many such questions, the answer depends on circumstances, but these are some factors to consider: The number and type of debts outstanding. My client has six credit cards, we have been able [...]
-
Can I Really Settle My Debts for Pennies On the Dollar?
by Brett Weiss, Maryland Bankruptcy Attorney
“Debt Settlement Companies” spend a whole lot of money on TV and radio ads. They also have a long history of problems. See the Federal Trade Commission website for some details. Generally speaking, the longer most credit card companies go without being paid the more willing they (or, more typically, the collectors they sell your [...]
-
Debt Settlement Companies Settle With FTC
by Jay Fleischman, Esq.
Two debt reduction companies – Debt-Set and Resolve Credit Counseling, Inc. – have agreed to settle Federal Trade Commission charges alleging that they violated federal law by falsely claiming that they could reduce consumers credit card interest rates or the amount of their credit card debt. Both companies sold debt reduction services through Web sites [...]
-
Credit Card Settlement Can Trigger Tax
by Kent Anderson, Oregon Bankruptcy Attorney
Bankrupcy may be better than debt negotiation. Credit card banks may offer settlement at a reduced amount if you get behind and fail to keep current on your payments. My colleague, Doug Jacobs, talks about Negotiating Your Credit Card Balance in an earlier series of articles on this website.  However, if a bank or other [...]
-
Can I Be Sued If I’m Making Payments To The Credit Card Company?
by Douglas Jacobs, California Bankruptcy Attorney
There are lots of street myths about debts and payments. One prevalent one is that the credit card company can’t do anything if you are making even bare minimum payments. This simply isn’t true. The statement you receive from the credit card company each month has a minimum payment amount. This will change based on [...]
