While working on a bankruptcy petition for a client I ran across the following letter from Chase Bank:
“Chase doesn’t deal with debt settlement companies. Here’s why”
The letter went on to explain that Debt Settlement companies often charge as much as 15% of the total debt to negotiate settlements and their advice that consumers stop making payments to their creditors ofter results in the original debt doubling or tripling due to cost and fees. Chase did indicate that it would negotiate directly with the debtor. In my experience many creditors will offer settlements of 50% or lower prior to selling the debt. The exception being Discover Card. So if you are thinking debt settlement, doing it yourself may be the only way and the best way to proceed.
