Choosing a Debt Settlement Company
Since 2007, a plethora of “debt relief” companies were erected from the collapsing Mortgage Loan field. Their own businesses having gone defunct, they decided to jump into an area unfamiliar because of great consumer demand due to the recession and struggling economy. It was said to be that as many as 2,000 of the aforementioned companies were in business to provide debt settlement/relief services. The issue was that the majorities of these companies were scams and had no knowledge of the industry, other than the prospect of charging consumers up front for a service they never provided. Moreover, these overnight companies had no insight or experience in the Debt Relief arena which led to massive fraud and more importantly consumer detriment. Since consumers were being defrauded and put into positions worse off than where they started, the Federal Trade Commission finally enacted a measure to provide an amendment to the “Telemarketing Sales Rule” Prohibiting Debt Relief Companies from Collecting Advance Fees effective October 2010.
Consumers beware of any Debt Settlement Company that:
- Claims that debt settlement is a government agency or that the Program is affiliated with federal or local governments.
- Claims that debt settlement programs are affiliated with the Stimulus program or part of a consumer debt relief initiative.
- Claims that debt settlement was created or approved by President Obama.
Unscrupulous companies use claims like the above to mislead consumers. Consumers must be aware of the facts surrounding debt settlement, and ACI recommends that consumers carefully read the FAQs, disclaimers and other information contained in our website.
Below is a list of questions you should ask and have answered before making a choice to move forward. Do your homework and be prepared. This is not an easy decision, you aren’t shopping for shoes here (maybe instead say “and can affect your financial future for years to come”).
Here are some questions to ask a Debt Settlement Company (click on the question for our Answers to those questions.)
Q. How long have they been an established business? Again, keep in mind most of these companies spawned in 2007 after their mortgage businesses went defunct. The longer a business has been operating the better, preferably pre 2007.
A. ACI has been serving consumer’s financial distress needs since 2004. We help achieve the ultimate goal for the consumer to become debt free and help them stay that way.
Q. Do they charge an upfront fee? Any company doing so is in direct violation of FTC guidelines and is completely operating in an illegal fashion.
A. ACI does not and has NEVER charged an Up Front fee. We have always run our business this way which enabled us to move forward seamlessly after the FTC law was in place as we did not have to conform to any of the new measures since we already had been operating that way prior to the amendment.
Q. Do they charge an upfront fee? Any company doing so is in direct violation of FTC guidelines and is completely operating in an illegal fashion.
A. ACI does not and has NEVER charged an Up Front fee. We have always run our business this way which enabled us to move forward seamlessly after the FTC law was in place as we did not have to conform to any of the new measures since we already had been operating that way prior to the amendment.
Q. Do they charge a monthly maintenance fee? Companies that charge these fees are out of compliance and are not out for your best interest.
A. ACI has never charged a monthly fee of any sort.
Q. Are they up front with the fees for service? How much do they charge, what percentage of savings or flat rate charge? Percentage saved is a much better platform as it is a performance based model, the only model that should exist and truly delivers results for the consumer since the company does not make money unless it save you money. Debt Settlement is a service much like Bankruptcy, Divorce or preparing your taxes- you can attempt it on your own but it is better left to the professionals with the time and experience, if you find the right company. In the long run, it will save you money and frustration and even potentially save you from putting yourself in a worse position. Find out what they charge, when you pay and what you'll receive in return.
A. ACI charges a fee based in what we save you. It is this performance based model that has enabled us to provide a quality debt settlement program and service to our clients, enabling the consumer to see results promptly and not paying for anything until we have earned our part by saving you money.
Q. Do they make guarantees about what will be settled and for exactly how much? If they do, what sort of guarantees are they offering and are they truly feasible? They say “if it seems too good to be true it usually is not true” for a reason. Every personal situation is different and settlements will vary, sometimes widely. A company should be up front and tell you that your settlement will have a range and depend upon your complete personal situation and your ability to perform and repay your debt consistently over a truncated period of time.
A. ACI offers program completion incentives along with revenue sharing from our “Refer a Friend” campaign and, most importantly, we offer a guarantee on our settlements. Contact us today to speak with a debt relief specialist to go over those details.
Q. How will you receive updates about your account including what creditor communications take place and when settlements are made? You should have access to your account information 24/7.
A. ACI has a Client Access Area on our website giving you real time, up to date information on every aspect of your personal debt settlement account.
Q. Do they provide consumer debt education? Can they help teach and assist you how to become debt free and budget properly in the future?
A. ACI not only provides debt settlement services, we also provide an overall budget analysis at the onset to better serve you with the goal of becoming debt free and more importantly remaining debt free. We offer helpful and useful tips on how and where to cut costs out of your budget for extraneous expenses or expenses you can save on. Living debt free is a way of life, not a 12-36 month program. We get to the root of the problem and fix the issue, not put a Band-Aid on it. Join the rest of our clients and become part of the “Biggest Savers!”
Q. Do they provide ongoing support? Who would you call for questions? Who would you talk to if you are sued?
A. ACI provides the utmost customer service. Should you have any issues, we are here to discuss them with you. We do not abandon you if you were to be sued, we stay involved and work out a resolution with the attorney and we can also refer legal counsel that can assist in preparing responses should you feel you have merit to do so.
Q. Do they have systems in place to protect your personal and confidential data? Many small debt settlement startup companies do not.
A. ACI keeps all of your information electronically secure and protected in our secure servers off site.
Q. Does the settlement company use a third party trust or escrow account to manage your settlement funds?
A. ACI completely adheres to the FTC ruling and is fully compliant in setting up 3rd party Trust Accounts for Client’s that wish to utilize that option. ACI has no control or affiliation to these FDIC Insured Banks whatsoever.
Q. Can you terminate the program with no hassle? Understand their cancellation policy and make sure it's in writing.
A. ACI makes it easy to cancel, simply mail or email us a letter indicating your wish to stop or cancel the program and your account will be closed and a check refunded to you with whatever remaining funds you have left (minus any earned fee) within 10 days of receiving the termination letter.
Q. Do they have a team of attorneys that will assist you in Legal Responses to potential law suits or help you File for Bankruptcy if need be?
A. ACI has a network of Bankruptcy attorneys ready to take your case over if you no longer wish to proceed with debt settlement or if the program is no longer financially viable for you. Not available in all States.
Q. Are they affiliated with any associations, service providers or the BBB?
A. ACI has chosen to NOT affiliate with associations in the debt settlement industry as those very associations were condoning and endorsing the behavior of the thousands of fraudulent companies. Instead we are part of a reputable organization; we are accredited through the Better Business Bureau with an “A” rating. Not many true debt settlement companies in the USA have an accreditation at all with the BBB let alone an “A” rating.
Q. Are they verified to be in business as long as they say they have been? Any BBB or Dun and Bradstreet verification?
A. ACI is verified to be in business since 2004 by both the Better Business Bureau and Dun and Bradstreet.
Q. Are they in your state and if not, are they licensed to practice in your State, if required?
A. ACI practices mainly in California and we can practice in a select amount of states nationwide (approximately 15). We choose to practice predominately in the state where we are located, that being California. This provides a more comforting experience to the consumer knowing we are local if not at least intra state.
Q. Are they running a mill? How many states are they operating in? How many different people do you have to speak with to get anywhere? How long do you wait on hold? How difficult is it to reach anyone with any knowledge of your case?
A. At ACI, we have less overhead, we have less than a dozen employees, and we are not trying to create volume, but quality. We do not NEED your business, we VALUE it. We do not assign our clients “numbers” and run them through the motions. You are our clients and we treat you as the most valuable resource we have. You are the reason we are in business and we do not forget that. You will speak to a specialist your first time calling in and from there on be assigned a point of contact or “agent” should you to wish to hire us. This “agent” represents you in all matters for the life of your debt settlement plan and time you are in the program with us, including post program completion follow up calls and continuing financial education of any kind needed or requested. ACI prides itself on its Customer Service. We are available to you 9am-5pm PST Mon- Fri and available on email most of the time after business hours and on the weekend. We also have an extremely interactive and informative Client Log In center on our website to provide you with all the details you may be seeking at any given time, 24/7.
Q. Is this company a sole debt settlement service provider or do they do have other areas of practice? Mortgage, credit repair, loan modification, etc?
A. ACI, from inception, has been solely a Debt Settlement Company, We have not spread ourselves thin doing 4 or 5 different things and seeing which one sticks. Companies engaging in several different fields lose their luster and more importantly are not specialized in their trade. They are what we refer to as a jack of all trades and master of none. The concept is similar to an all-in-1 printer; every device works ok in the beginning, , but at a low quality (this could include their debt settlement service to you). Sooner than later one of the aspects gives out rendering the entire thing useless, then you realize it was better off to go with a dedicated device that was specialized in the service you needed.
Q. Have they made all of the proper disclosures to you regarding potential tax ramifications, law suits, and derogatory marks on your credit score, their service fees, etc?
A. ACI makes all of the proper disclosures to you verbally in our Free Debt Analysis Consultation, in writing through our Debt Settlement Agreement Contract and also via our website disclaimers located throughout the site including dedicated pages and on our news link section. This type of program is not right for everyone. It is our job to evaluate your situation to see if this is a good fit for you, or if not, we can recommend other potentially viable options.
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