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Review 8/18/2010
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I agree with the previous poster. The only thing that was different with my experience was they did attempt to handle accounts prior to there being sufficient money in my account to settle. However, this was only after multiple phone calls and prodding.
In their defense, they did settle one of our accounts for much less, but at the cost of our credit. One account settled for more than the original balance, and two other for 80% of the original value. Two accounts are unresolved, with one of them in the summons process.
For anyone considering signing up, let me tell you a little about what is to be expected.
First of all, you will enter into an agreement with Financial 180, often through an affiliated group (we originally corresponded with Affordable Debt Solutions). They will add up the all the debts that you wish to settle. You will owe them a percentage of that debt as their fee (ours was 8%). You will break this down into monthly payments that MUST BE deducted directly from your checking account. You give power of attorney to the company to settle these accounts. However, this is a little misleading, since they are not lawyers, and cannot represent you in court.
You are instructed not to answer any calls from credit card companies and to stop all payments. During the months that this takes, the majority of your payment will be taken by the company as a NON-REFUNDABLE fee. When you receive letters from the credit card companies that the accounts have been turned over to collection attorneys, Financial 180 then contacts these companies and attempts to negotiate settlements.
If they are successful, you might come out on top. If they are not, you might end up in court with the credit card company. Once again, any official legal action is not included. In fact, there was an additional fee just for writing a legal response to one summons. They do not represent you in court. If they fail to keep you out of court, or to settle these debts for less than what was originally owed, they will NOT REFUND any part of your money. Be advised, they will tell you that "out of 6000 accounts, only 25 have gone to court." This number has not changed in one year, so they are either really good, or not entirely up front.
I cannot verify it from personal experience, but if you are truly unable to make payments, you may have better luck with the credit card companies directly. However, you are instructed not to talk to them at all. This company looks to be an unnecessary, expensive middle step for those truly in debt, and too risky a gamble for those who can pay their debts.
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