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National debt relief program - Is it a scam in USA?


National Debt Relief Program is a debt relief plan, offered by an US based settlement company named National Debt Relief. A DebtCC member, named istyblue901 said that National Debt Relief sent her unsolicited debt settlement proposal claiming they are a Government agency and they can reduce the debt balance to an affordable amount. However, most of the consumers enrolled in the National Debt Relief Program have given negative feedback about it in the DebtCC forums and said that the company fails to deliver what they promise. To know more about National Debt Relief Program, check out the topics given below:


How do people review National Debt Relief Program?

According to some consumers, National Debt Relief Program is a scam. Customers feel that the program is all about settling unpaid dues for less than the original balance. They say that anyone joining the program is asked to stop making payments before the company starts negotiating with the creditors. However, the negotiations don't begin until the customer accumulates enough funds for the settlement. This hurts the customer's credit scores big time.


Here are some observations that consumers made about the program:

  • A way of making money: A poster in the DebtCC forums claims that National Debt Relief Program is a scam. He says that the company offering the program does little to reduce the debt payments; rather they are more concerned about making money. Read more.
  • No written document: A person says that the company does not provide you with any written document. So, you are unaware of whether there has been any agreement between them and the creditors. He feels that when you have no written agreement, you can do nothing if you end up being sued by the original creditor. Get the details.
  • Misjudged as Government agency: Some customers say they misjudged the company as a government organization. However, the company bears no connection whatsoever with the National Debt Relief Stimulus Plan which is a government-backed program offered to those who are struggling to pay their bills. Neither does it have any connection with National Credit Relief Agency which is a financial counseling company. Know more.

Has anyone had any good experience about this program?

Some people say that they've really benefited from the National Debt Relief Program. A few of those experiences are given below:

  • The program is helpful: A customer claims that the program really helped him in settling the debts. He says that he was able to settle debts worth $80k for just about $30k over a period of 3 years. He also stopped getting calls from creditors after he enrolled in the program. He claims that the program helped him increase his credit scores even up to 650. Find more.
  • The company is reliable: Another person says that the company supposedly offering the National Debt Relief Program, has a B+ Rating with the BBB and is a memeber of TASC, USOBA and IAPDA. He says they are not a scam company in any way. They actually negotiate with your creditors and help you get rid of debts. Check out in detail.

It's important that consumers do research thoroughly about any debt relief company prior to enrolling in their program. They should check the licensing status, accreditation and consumer feedback before going for programs like the one offered by National Debt Relief.

member profile picture
Posts: 69
Credits: 2130.05
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I am currently in Chapter 13 and I am having a difficult time paying on the monthly plan, a payment plan that I could not afford in the beginning but trusted my Attorney who informed me that I can modify it. Unfortunately the Judge rejected it and now I am expected to pay that amount. How did it end up being so high, mean test, I was informed. Well, I am at the risk of it being dismiss because I am only sending in the money I can afford. I received a letter in the mail from National Debt Relief (Settlement Company) claiming they can reduced my payment down to what I can afford. They claim they are a governmental agency and advise me to stop sending money to the Trustee and enroll into their program. Have anyone heard of National Debt Relief Plan?




Unregistered

Sub: #1 Seems the company is based out of Midvale, UT, but their website
Mon, 03/02/2009 - 21:13

Seems the company is based out of Midvale, UT, but their website leads to a landing/capture page and lists other companies in the debt industry. Could be a lead generation company.




phoenix

Posts: 1444
Credits: 27482.986302088

Sub: #2 national debt relief
Mon, 03/02/2009 - 22:10

National debt Relief has got a F rating from BBB. So, check its credentials. You may follow the points mentioned in the following page: -
Points that can be followed for selecting a good debt settlement company




mistyblue901
Posts: 69
Credits: 2130.05

Sub: #3 Governmental Agency my butt, thanks for the warning!
Tue, 03/03/2009 - 10:31

Governmental Agency my butt, thanks for the warning!




Unregistered

Sub: #4 It seem the president(notice no capital) is getting RID of the M
Wed, 04/29/2009 - 18:25

It seem the president(notice no capital) is getting RID of the MIDDLE CLASS. Only people gaining are he ones that work and live off the system or should I say the one we had!




Unregistered

Sub: #5 Federal Debt relief for Background checks for government job
Mon, 05/11/2009 - 09:06

Mr. President need to give a relief for everyone. We American people need jobs. All of the Gov't and private contractors are asking for background checks and if you owe debts, no jobs, no job will be awarded they tell you no. This need to be address . Protest people for more help.




Unregistered

Sub: #6 national debt relief program
Mon, 06/29/2009 - 11:25

I got this letter too. These are ???debt consolidation??? companies. They tell you to stop paying your credit card debt and they will ???handle??? your account for you. Don???t be stupid. I was??? I hired My Credit Solutions and they sent a letter to both of my credit card companies saying they were hired by me to handle my debt. Which in ???plain English??? means they tell your creditors to get off your back for a few years while you save up a negotiated ???portion??? of the money you owe. You pay them a monthly fee and when you have ALL the money, they pay off your credit card debt. They charge a small fee for themselves (of course)
What they don???t tell you is they aren???t paying any of your debt until you have the grand total in your bank account. That means your credit card companies aren???t getting ANY money until 4-5 years. Keep in mind they don???t HAVE to deal with whatever debt consolidation company you hire. They run credit checks on you every week, which knocks your credit score out of the ballpark. (I went from a 790 credit score to a 540 in 6 months) If they see you have any assets, or that you are paying your mortgage on time, they can and will sue you. (if they see you have any money, they will not let you slide) 5 months after I hired My Credit Solutions I was served a summons that one of my credit cards is suing me. (they saw I paid off my car and was paying my mortgage on time). I had to fire My Credit Solutions, deal with the collection agencies and work out a plan with them.
So in a nutshell, call your credit card companies and handle it yourself. You can usually get the same rates as debt consolidation companies. One tidbit I learned the hard way is??? my bank of America credit card balance was $19,000. BOA offered me a settlement of 11,000, but I had to pay it in 4 equal payments. I knew I could not afford that, with their 28% interest rate, so my account went to collections. When you make payments to the collection agencies (not the credit card companies directly) the interest rate is about 8% (depending on your state). Had I known that, I would have let it go to collections long before that to get the lower interest rate so I could put a faster dent in my debt.
So when your credit cards do go to collections, don???t blow off their calls like I did. (they can be extremely rude). They are willing to work with you and your debt problem will get handled. As for the letter you got in the mail, toss it. Those companies provide a service you can do for yourself.




Unregistered

Sub: #7 national debt relief plan
Mon, 07/13/2009 - 17:37

I just wanted to say that I received a letter regarding national debt relief program as well. I am already with a company - CareOne Credit Counseling AKA CareOne Services. They have an A rating with the BBB and they do distribute payments monthly to your creditors. I know this because there are times that I have had to change the dates and I have had creditors call to confirm that I'm making a payment...other than those instances - creditors don't call me. They submit offers on your behalf and I did have a few creditors want more...but I'm still paying less overall through them than I was on my own and again, no calls from creditors anymore. You do pay a monthly fee to the company...in my experience, their customer service is impeccable.




Unregistered

Sub: #8 not a govrnment agency but truly helpfull....call 888 217 9216 e
Fri, 07/17/2009 - 11:20

not a govrnment agency but truly helpfull....call 888 217 9216 ext 7824




Unregistered

Sub: #9 If you have no assests, there isn't a lot that credit card compa
Mon, 08/03/2009 - 09:59

If you have no assests, there isn't a lot that credit card companies can do to collect. In some states they can garnish your paycheck, but only for a small amount. And if there is no activity for 7 years, (no payments by you and no lawsuit by them) the debt does just "go away". If you are married, put all assets in your spouse's name. And when the collection agencies call, just tell them that you are recording the conversation. Then tell them to stop calling. By law they must.




Unregistered

Sub: #10 Regarding Post #7 above. You say that the collections agencies
Tue, 09/08/2009 - 14:07

Regarding Post #7 above. You say that the collections agencies charge less interest than the credit card companies involved. I had always heard that once an account goes to collections, your credit rating pumults, and there is no need to even settle with the collection agency, as they have bought the account from the creditor, pennies on the dollar, hoping to intimidate you to pay your debt in full, thus making a profit. Guess my question is.....does the collection agency turn in favorable reports to the credit bureaus on your behalf, if you settle with them, and does making the payments help your score ?




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