First American Financial Group

Typically debt negotiation companies advertise via websites or on the radio that they are able to settle debts for far less than the amount owed, can stop creditors calls, and that the process is more effective than those provided by Credit Counseling Services. Our experience with similar offers has been that creditors continue to harrass clients, fees and interest continue to accrue, credit history becomes worse than before, creditors are not contacted or paid, and clients are sued for payment. Generally, these companies require fees to be paid in advance before any services are performed. They instruct the consumer not make payments to their creditors, but instead to them, and they claim to hold the funds until such a time they believe they have enough funds to make an offer. It is during this time that the creditors will likely take steps to secure payment, such as; telephone calls, derogatory credit reporting, arbitrations or law suits. For the foregoing reasons, we advise caution in dealing with debt negotiation/settlement companies. Since this company is paying the debts or transferring the money of consumers, it may be required to post bond and be licensed with the California Department of Corporations as a Prorator. We advise you to verify licensing by calling (213) 576-7514. In addition, this company has not complied with California law which requires credit repair offers to be registered with the Attorney General and post a $100,000 bond. This same law prohibits collecting fees before promised services are performed. By law, information stays on your credit report for seven to ten years. Accurate negative information can only be removed with the cooperation of your creditors, which usually involves paying the debt.