My Debt Choice Unseen hidden charges and deceit Costa Mesa California
I was in debt and being in college made it more difficult even to pay off my monthly installments on my credit cards. At that time I approached "My Debt choice" which turned out to be a nightmare now.
Initially they took my phone call and comforted me by saying they will handle the situation. They took details of my debt and gave me a quote that my debt will be settled in 18 months. I signed the letter and faxed them back.
It all started from there. They are middle men to a law firm which rips you off. The initial settlement time they mention is no way a genuine one. From every month payment the law firm takes away $55 for account maintenance. You keep paying them every month and get calls from your credit card companies all the time.
Even after 17 months (out of 18 months they initially mentioned) I have paid the amount they asked for, my account is not even half way settled. As long as it is not settled they keep taking their account fee every month. There is another catch.
The credit card companies keep adding fees for not paying their balance and it builds up to lot more than what your initial debt was. When they offer a settlement they quote approximately 50-60% of the final amount. The law firm charges 33% on the settlement. At the end of everything you end up paying more than what you initially owed and added to that you will have bad credit on your account. Look at the math.
By the time the account is settled the fees added by credit card companies is generally 25% of your debt. They settle for 55% of the final debt.
Settlement amount = 0.55 * (1.25 time of initial debt) = 62.5 % of initial debt.
Settlement fee = 0.33 * settlement amount = 20.6 % of initial debt.
Account fees ripped off every month generally comes to around 25 % of the amount you pay = 0.25 * ( 0.625 + 0.206 ) = 20.8 % of initial debt.
Total you pay = 0.625 + 0.206 + 0.208 = 104% of initial debt.
All the time this is happening, you will have bad credit. This is all deceitful taking into consideration the ignorance and desperation of the consumers.
They do nothing that you cannot do. Instead of paying them this additional amount you can directly negotiate with your creditors and pay it off.
Rip off Rip off Rip off.
Debt choice victim
kansas city, Missouri
U.S.A.
1 Updates & Rebuttals
Truth Teller
Costa Mesa,California,
U.S.A.
The Whole Truth on How People dont payattention
#2UPDATE Employee
Tue, April 21, 2009
It is so shocking to me to find a report that is so far from the truth. All of the jargon with the percentages is false and makes no sence whatsoever.
This person was fully informed in 4 ways as to the type of program she would be getting into. We are simply a referal company which is stated in the begining of the conversation by the consultant. And by the way listed on the contract more than once.
There is a 13 page contract that fully discloses the information, there is a voice verification that acknowledges the person understands the type of program they are entening into and that Debt Choice is a consulting company with a response of "yes" by consumer acknowledging to us that they understand. And there is a script that makes sure we are staying on ethical track because we are an ethical company that fully discloses who we are and what we do.
This person stated she got the letter sighned it and sent it back. Unfortanetly it seems she neglected to read it and perhaps ask questions.
Perhaps this person was trying to get away with not paying her creditors back the money SHE barrowed. If she didnt rack up her credit cards she would not have been in this perdicament. The question really is, who was ripping who off?
Maybe she really had more credit card debt than she stated, who know what her issue was the most important thing here is to pay attention, ask question and if it works out for you great, if not move on.
We are deffanetly an honest company who helps thousands of people. I receive many "thank you" letters from individuals who needed a good referal company to hear them, and assist them.