California Consumer Rights

The Debt Settlement Horror file is open for business. Too many of my clients have wasted big bucks on so-called debt negotiation companies, who promise to settle your debt for 60 cents on the dollar. Sounds good, until you learn that the upfront fees and monthly account maintenance fees can amount to 40% of the total debt. That doesn’t leave much room to save money, even if they do make good on their 60% promise.  And here’s a dirty little secret: some creditors won’t even talk to them.  They don’t tell you that.  They also don’t tell you that when you stop making your payments and start paying into your escrow account [aka settlement war chest] your creditors will very likely – if not certainly – sue you. And since these companies don’t practice law,  there you are:  high and dry,  payin’ money for nothin’.