Frequently, a potential client contacts Voytas Law, LLC with two problems: they have just been sued over credit card or medical debt, and they don’t have any cash to deal with the problem because they decided to pay a “debt settlement” or “debt relief” company months ago to “negotiate” the debt away. While it is often too late to do anything about the lawsuit from the credit card company, we can assist such clients by filing suit against the debt settlement company.
“Debt settlement” is a bad idea for anyone who wants to avoid (1) getting sued or (2) significantly downgrading their credit score. Debt settlement companies rely on a sales pitch that looks like this: “Instead of sending monthly payments to your creditors, send monthly payments to us. We will hold the money and use our expertise to negotiate a settlement that saves you thousands of dollars.”
Typically, the debt settlement companies employ non-attorney negotiators with little or no formal training in the laws that impact debtors and creditors. They hope that by not receiving payments over many months, the creditors become desperate and adopt a “we will take anything” attitude. It does not work this way. Most creditors have lawful access to your credit history, so they know if you are employed, if you have assets, or if you are otherwise a good target for a lawsuit. If you are working and decide not to pay to creditors, the odds are exceptionally strong that creditors will sue you if you stop paying them.
Think about it: your creditors have good lawyers- lots of them. Your debt settlement company has nothing to combat this. If and when you get sued for not paying your creditors, you will be surprised when your debt settlement company turns its back on you.
Fortunately, there are a number of laws that can help consumers get their money back from debt settlement companies. Missouri Statute 407.638 contains a long list of conduct that is prohibited for debt settlement companies. In many cases, it is unlawful for the debt settlement company to take (or even to hold) any money from you at all until the “negotiation” is complete. Under the statute, it is illegal for the debt settlement company to promise to “erase” bad credit. The statute requires any debt settlement doing business in Missouri to be bonded. If a debt settlement company breaks these rules, we may be able to handle your lawsuit against them at no cost to you. The law provides that the debt settlement company must pay our fees.
The Credit Repair Organizations Act is a federal law that offers additional protection to consumers who do business with debt settlement companies. 15 U.S.C. 1697b prohibits a debt settlement company from making false promises about what it can do for a consumer. As with Missouri’s statute, the CROA provides that the debt settlement company must pay our fees if we take your case and win.
At the end of the day, don’t give up if you’ve been put in a bad spot by a debt settlement company. Your best option may be to sue the debt settlement company. We are licensed in Missouri and Illinois to provide you with counsel on this issue if you need it.
Please call us if you have a question. Your case is important to us.
Rick Voytas of Voytas Law, LLC is a trial lawyer who combines objective advice with the tactical know-how to obtain the compensation you deserve. He has more than nineteen years of courtroom and litigation experience, handling a variety of difficult cases.
As a native of St. Louis and licensed in Missouri, Illinois, and various federal courts, Rick Voytas provides knowledge and personal attention to your legal matter.
Don’t delay! Contact Voytas Law, LLC now for your debt collection legal problems in Missouri at 314-380-3166 or learn more at www.voytaslaw.com.
The choice of an attorney is an important decision and should not be based solely upon advertisements.
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