11-17-2010 03:44 PM
My mother and I have a couple of private school loans in both of our names for around $30,000, she also has a few other debts totaling $13,000. In April of 2009 she signed up for a debt settlement program with the J Hass Group, basically for 48 months we pay them $500 a month and the are supposed to settle all of our debts. Well I started to get curious about where my money was going and how much of my debt was paid off.
I called them today, we have paid them around $8,500, our trust account has $2600. Which means some $5900 has gone towards fees and some 'reserve' account. None of it really made sense to me how he tried to explain it. The kicker, NONE of our debts have been settled. We have 6 creditors with them and they haven't settled ONE. Apparently they are working on negotiations with one of them now, and it's the lowest debt of only $1900!
They tried to tell me it takes around 1 1/2 to start getting settlements (which conveniently is how long we have been paying). They told me the goal was to have them all paid off in 48 months and that they would succeed in that goal. Well I feel suckered.
Does anyone have experience with these programs. Any advise on what I should do? Should I keep paying them? Or just stop and see $8500 flushed down the drain?
11-17-2010 04:04 PM - edited 11-17-2010 04:14 PM
$500 a month for 48 months is $24,000, paid to them.
If your debt was initially $30,000 plus $13,000, how would this debt settlement program possibly pay the debt?
Unless your agent, J Hass, negotiated a reduced settlement of the debt. If they did, they should provide you those documents.
What are the terms and fees of this "debt settlement program?"
Any agreements signed by the creditors for acceptance of less than full payjment as a legal satisfaction of the debt?
I would demand any legal commitments reached between your agent, J Hass, as to terms of payment and fulfillment of debt.
Unless the creditor has agreed to payment for less than the debt, then payment over 48 months of $500 a month wont even cover the debt, let alone any continuing monthly interest, and other fees they are charging you.
You need documenatation, not from J Hass, but from the creditor, of your payment obligations.
Not a clear situation.
11-17-2010 04:25 PM
I know they keep negotating with the creditors until they get an agreement to pay off 40% of the debt. I have the paperwork around here somewhere, I'll have to find that and let you know the terms.
11-17-2010 05:00 PM - edited 11-17-2010 05:01 PM
I would just write them one simple letter. They are your employee, not your boss.
What, in the course of their business on your behalf, has been stated by the creditor as the total debt owed, to date?
What are the specific fees they are charging, both in interest and any other fees,, that now remain?
Do they have any legal agreement with the creditor to accept, as legal payment in full, any amount that is less than the intitial amount of debt/interest/fees?
If so, what are the terms of their legal agreement with the creditor?
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.