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If you are in a settlement program with a lawyer and the lawyer sends your creditors a C & D and power of attry, what then happens? Do the creditors stop calling me and call the lawyer?

I guess I don't really understand how that works, like the creditor then just hangs out and waits to hear from the settlement company, (I'm guessing not)....




My understanding is that's one of the advantages of using an attorney (as opposed to a non-attorney settlement company) to do your debt settlement, and that once the creditors know that you are represented by an attorney, they are not supposed to contact you anymore. I could be wrong though . . .

Sub: #1 posted on Sun, 08/24/2008 - 08:59

alias1958 alias1958

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3rd party collectors are required by the fdcpa to contact the lawyer instead. Whether they do or not depends on how committed the collection agency is to compliance. Lenders collecting their own debt aren't required to follow the FDCPA (although some state laws don't make this distinction).

In my opinion, the main advantage of having a lawyer is the threat that you might go into bankruptcy instead. But this is only true if it's a "real" law firm. Most outfits that advertise themselves as debt settlement law firms are just debt settlement companies with a lawyer's name on their letterhead. The lenders realize this and treat them accordingly.

Sub: #2 posted on Sun, 08/24/2008 - 09:13

FreakyFriday FreakyFriday

(Posts: 490 | Credits: 0.82)

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