Results 1 to 2 of 2
  1. #1
    Join Date
    Sep 2016
    Posts
    13,916

    Default Contract for Reduction of Credit Card Debt

    A debtor has been contacted by the Federal Debt Assistance Association, and has been asked to sign a contract that will reduce $40,000 in credit card debt down to $3,500. That sounds too good to be true. Can the offer be real?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Contract for Reduction of Credit Card Debt

    The Federal Debt Assistance Association is a private company with an official-sounding name, that does not have any association with the government. They seem to fall into the broad category of companies that offer "credit repair" services, disputing debts and hoping that the creditors don't validate information about the debt with credit reporting agencies. As they don't appear to actually negotiate settlements of debts with creditors, be careful about what the contract says. For example, is it simply promising that debts will disappear from your credit report, as opposed to actually no longer be subject to collection and, if so, for how long? Given that you can still be sued for a debt or be the subject of debt collection for a debt that is not on your credit report, if that's what they're offering you have you ask yourself: Even if they succeed, is it worth the money?

    1. Sponsored Links
       

Similar Threads

  1. Debt Collectors: Liability for Credit Card Debt for a Card a Spouse Secretly Opens Under Your Name
    By julbox3134 in forum Debts and Collections
    Replies: 3
    Last Post: 06-06-2014, 11:46 PM
  2. Collection Lawsuits: Can You Avoid Repaying Credit Card Debt Over Errors in Your Card Application
    By Amergin in forum Debts and Collections
    Replies: 8
    Last Post: 04-19-2014, 09:03 PM
  3. Credit Reports: Disputing Credit Report Entry for Charged Off Credit Card Debt
    By Bugs in forum Personal Finance And Investment Law
    Replies: 3
    Last Post: 04-06-2012, 05:47 AM
  4. Loan Agreements: Credit Card Debt: Oral Contract With Ex
    By joshcore in forum Debts and Collections
    Replies: 3
    Last Post: 02-15-2008, 08:56 PM
  5. Loan Agreements: Using Contract Law to Wipe Out Credit Card Debt
    By tanyad in forum Debts and Collections
    Replies: 2
    Last Post: 10-12-2007, 02:28 PM
 
 
Sponsored Links

Legal Help, Information and Resources