A:        If you are experiencing a financial hardship, your credit is already (or soon to be) affected.  Making settlements has a better outcome on your reports than bankruptcy or Consumer Credit Counseling Services in the long run.

 

A:        No.  We make settlements with stipulations that they promise to upgrade the reports.  Do not expect the creditor to follow through.  The settlements (with upgrade language) allow you to dispute the derogatory entry and have it removed or upgraded.  This service is NOT included with settlements/negotiations.

 

A:        Very high, especially when settlements are made.

 

A:        Yes.  Letters are sent immediately, usually by fax, to our contacts in the collections dept.

 

A:     NO, we will send a 'letter of authorization' and a 'cease and desist" letter, which, according to the FDCPA forbids them to contact you.. However, if a creditor ignores this demand, simply tell them to call us, or, fax email, or call our office at once. if this persists, you can file a claim with an attorney that we will refer you to, who will take degradation against them. in any case, do not engage in any dialogue with the creditor, and DO NOT send them any money.  check our link under FDCPA

 

A:        No.  If you pay some of your cards and still make charges, the following will probably occur:

 

1. The cards with whom are negotiating will see the activity and say “if they can afford to pay __________, they can afford to pay us”.
2. Once the cards that you are trying to keep see that you are not paying the other creditors, they will probably close your account, despite the fact that you are paying them.

 

A:        Creditors usually want lump sum payments, although sometimes we can get terms over a few months.  Make your check(s) payable to the creditors and send them to our office for processing.  Financial 180 Group will make sure all payments are sent to the proper department.

 

A:        At the time of the settlement, Finacial 180 Group's commissions are due; in other words commissions are due upon presentation, and acceptance of a settlement and payment by you.

A:        No.  As with any professional services (such as doctors, lawyers, etc.), there can be no guarantees made on the outcome of our services.  We do, however have an excellent track record, and have several letters of recommendation to the effectiveness of our office.  Besides, no commissions are earned by us until we have a favorable outcome on your account.

 

A:        While every creditor has the right to sue, it is not very common.  The creditor is forced to advance more money to file a lawsuit.  In the event that you get sued, DO NOT panic and be sure to forward all correspondence to our office.  At that time you will probably be given the following options:

A)

• a)  Make a settlement; in this case you must have the ability to fund.  This matter is now a priority.
• b)  Enter into a stipulated pay plan in order to avoid additional legal fees or a judgment on your record.
• c)  File an answer, which basically holds off any default actions against      you.  Financial 180 Group can arrange to have an attorney prepare an answer for you.  You will be charged for this service.

2

B) In the event of a creditor taking an arbitration action against you:

• a) We have found that the arbitration board favors the creditor however, once the creditor receives an arbitration award they must then proceed with local legal action to collect
• b)  There is no simple answer of whether Financial 180 Group recommends answering an arbitration claim or to make an unfavorable settlement or just wait it out.  Every client’s circumstances are different and we prefer to evaluate the client’s situation on a case by case basis.
• c)  Furthermore, we are involved with consumer advocacy groups to help counteract some of the unfair arbitration claims.  Financial 180 Group treats all lawsuits and arbitrations with the highest priority.

 

Q:        Can you negotiate a cash settlement after we have entered into a                             payment plan?

A:        Absolutely! Often times a client will prefer a payment plan to avoid a lawsuit and may not have the cash to make a settlement.  Later, when they have cash available it may be a good time to make a cash settlement based on the status of payment plan.  And yes there would be another commission due.

  

A:        The creditor has an opportunity to pursue collection, via wage garnishment, bank account levy, or filing an abstract judgment, which places a lien on properties.  We can still negotiate settlements even after a judgment is obtained.   

 

A:        A lien becomes a secured debt similar to a mortgage debt.  While this debt is negotiable, the greater equity cushion you have on your property, the less chances of a great deal.  Generally speaking, creditors will still make a fair settlement.  NOTE: Never tell the creditor that you are selling or re-financing your property.  You run the risk of ruining any possibility of settling (Duh, they know they can get paid in full when you are selling or re-financing your property).

 

A:        Yes, after they go through the lengthy legal process; do not leave money in any bank that you owe to. 

 

Q:        Can you begin a settlement after a creditor has begun wage    garnishments?

A:        Yes, although it is generally more difficult.  If the client is employed with a good employment history, the creditor may be patient and “wait out” the garnishment process.  After all, the creditor has gone through the entire legal process to obtain that garnishment. Most creditors will accept cash and not wait out the garnishment process.  As a rule, the less reliable the client looks the better deal they will obtain.

A:        Financial 180 Group will set up the first three (3) installments with the creditor and will then provide all necessary contact information for the creditor to the client so client may set up remaining payments directly on their own.  In the event that an account goes into default due to negligence on client’s part, Financial 180 Group is not responsible. 

A:        Yes!  The creditors will still charge interest, late fees, and over the limit fees.  The increases will look worse on smaller accounts, but these fees will be added to all accounts.  Remember, you are not making payments so you are saving that money to put aside for when settlements are made (If you were making minimum payments, your balances would never go down).  Remember, Financial 180 Group negotiates a settlement based on them amount owed on the day the settlement is made.  We are generally not concerned about lowering interest rates; we are concerned about lowering your entire balance.

 

Q:        Is it worth negotiating settlements on a small account in order to show better credit?

A:        Simply paying your bills does not ensure a better score on your credit report.  Financial 180 Group would rather assist in providing your bills with appropriate documentation (similar to settlement letters) for future credit verification.  Since this is not a commission generating process, Financial 180 Group will quote an administrative fee.

A:        Generally yes.  This question is usually asked when a client is in a Chapter 13, the only bankruptcy case that is easily dismissed.  When being retained to make settlements, we need to coordinate the dismissal with the bankruptcy attorney, otherwise there may be a conflict with the creditor.

A:        Yes, student loans (Government backed) can negotiate cash discounts under certain circumstances.  Other options are deferments and modifications.  The modification generally involves lowering the interest rate or payment(s) while deferments put off your payment(s) for up to one year.  Please refer to your student loan information sheet. 

 

A:        While you should include all accounts, the credit union generally cross collateralizes your credit union credit cards (or signature loan) with mortgages or vehicle loans (most bankruptcy attorneys do not know that).  While Financial 180 Group has made many great settlements with credit unions we need to know how many other accounts you have with the credit union.

Q:        Can you negotiate a workout on my house when I am in foreclosure?

A:        Yes.  There are special departments that assist in making mortgage workouts.  Because customer service representative generally does not know workouts exist, it is better to let a professional handle the work.  One of the key elements in negotiating a workout is to convince the lender that whatever hardship that brought the clients into arrears has been resolved.

There are three types of mortgage workouts: 

• A)  Forbearance agreement – a payback plan on all arrearages and fees.  Generally, but not always this will involve a down payment and monthly payments over a short period of time (3 – 24 months). 
• B)  Modification – this is similar to a refinance, but it keeps the   same loan.  Sometimes this involves lowering interest rates.  This option is the hardest to get and generally the number one preference of the customer.  Fees are more for a modification than a forbearance agreement.
• C)  Deferment – This is when you hold off on making payments for a few months only under special circumstances.  This is not meant to let the homeowner have a few months off and live payment free; this only applies in extreme situations with a verifiable resolution.