Ad Blocker Detected
Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.
Problem: Rachel stays in Boston and has recently started dealing with a debt consolidation company to clear off her debt. However, after about 3 months of working with them she found out that this company paid none of her creditors. She has been receiving repeated collection calls and doesn’t know what to do. She has paid this debt consolidation company the money that they have asked for but is worried if she should pay them any further.
Solution: Like Rachel a lot of you may not be able to easily to distinguish a scam company from a sincere one. However, there are still ways to find out if a consolidation company is a fraud or not. In this case, many a times it may happen that the process that the consolidation company follows may not be clear. Many companies first stock the money for a few months and only then start making payments.
In such a case it is better that Rachel goes through the documents that the company has provided and take a look at what they have mentioned as their payment procedure. If they have not mentioned anything about stocking up money before paying the creditors, then there may be a problem. However, if they have mentioned about stocking up then Rachel must look up the time for which they would put money in that stock before paying the creditor.
If Rachel finds that the debt consolidation company has not been paying her creditors, she must immediately opt out of their plan. She must immediately inform her creditors about the situation and explain to them properly that she intends to pay their money. She might also request them for a hardship program. She must inform the creditors that she has opted out of the consolidation plan and that she would be handling her accounts herself henceforth.
Rachel needs to consider certain points. She must see if she can borrow enough money to meet the balance to be paid to the creditors. Even if she joins a hardship program, she must know that most creditors stretch it to a maximum of 12 months. Some offer only 6 months. She should be protected by debt consolidation Boston laws. She must check with her state laws about how she can be protected.
Related Blogs
- Related Blogs on What to do when consolidation company does not pay creditor?
- Free Golf Clubs