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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I took help from Consumer Debt Help in Jan.2011. I fell behind

Resolved Question:

I took help from Consumer Debt Help in Jan.2011. I fell behind on payments to Capital One Bank, and my Care Credit Card through GE Money Bank. At that time my Capital One was $10,854.54. My Care Credit was $3,868.87. I had to go to court last week for a summary judgement against me. Now I owe $11,046.68 to Capital One. I am sure I owe $1,000 more to GE Money Bank. I have been advised not to talk to my creditors, so have always ignored the phone calls. I have a good friend willing to loan me $10,000. I told Consumer Debt I want to be debt free, its too hard going on like this. I have been paying them $216.99 a month since Feb. I have paid a total of $1,952.91. With the fees taken out I $1,330.91 in my acct. Consumer Debt wants me to put the $10,000 into Noteworld Bank and they are going to try to settle these Debts. I am willing to do that, but can I be sure Capital One and GE Money will get the money? What can I do to make sure they do?
Submitted: 5 years ago.
Category: Legal
Expert:  TexLaw replied 5 years ago.

I know that dealing with consumer debt is very stressful, especially in times like these. When you fall behind, it makes it doubly hard with all the calls from the collectors.

In your situation, your creditors, such as Capital One Bank, has secured a judgment against you.

When you hired Consumer Debt Help, what they agreed to do is basically settle your debt for you. They are professionals and are able to accomplish this. However, they do take a fee for their services. They are holding the money that you pay them in their account and when the creditors finally agree to the settlement, they will take the money from the account and pay the creditors.

At this point, you have several options. If you give the $10K to Consumer Debt Help, you cannot be assured that they will pay Capital One with it. They will most likely put it in their account and then try to settle with Capital One for a smaller amount. They might possibly be able to use the entire amount you've deposited to settle with more than one of your creditors.


If you want to make sure to pay off Capital One, you can call them yourselves and tell them that you want to settle the judgment amount for a flat $10K (or less) and see if they will take your offer.

However, since you've already hired Consumer Debt Help, you are probably best off handing the money over to them and letting them continue trying to settle the debt, as when they have a larger sum they are more likely able to get the job done.
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