This was the biggest mistake of my life! I'm so ashamed I even signed up with Debt XS.in late after quitting my job, moving to Alaska, being out of work (I looked actively!) for three months, first/last/security deposits, etc., my debt became too much for me. I felt like I was drowning and sought help through debt consolidation. I researched Debt XS and found their affiliations and associations to be noteworthy and their reputation (seemingly) sound.
I signed up with my debt analyst who told me that he would be handling my account through my settlement and that at any time I could call or email him. He said that once my debts were settled my credit would take a small hit, but it wasn't anything that wouldn't clear up six months after my settlements were cleared.
As soon as I signed up, my debt analyst "quit". I was told that I should contact Customer Relations / Service with any questions. Everytime I called Customer Relations I was treated rudely and was told that I should email my questions. When I would email, they either were 1. Never answered or 2. When a response finally came it was short, snippy and condescending. If they don't want people calling their phones, why publish your telephone number? Duh.
I was told that the creditors would call, but good heavens. They called my PARENTS! My parents weren't even living in the same state as I was at the time - and they called my PARENTS! Of course my parents called me in a panic - "what's going on?!" How embarassing. I was called at work by creditors - it was just awful! They even called one of my employers at the time!
My first settlement came in September. After I had given Debt XS over $3K as "payment", they settled my account for what I would have probably been able to do. I owed a credit card company about $9K went I went into the program. Through late fee's by the time I settled I owed the credit card company over $13K. The debt was settled for $5,800. When the settlement call came from Debt XS I was treated to a representative basically yelling at me. "They want to settle! How much do you have? You have to get back to me right away!" I scrambled trying to get everything together and when I did, they faxed me this crooked, messed up fax that said it was settled. I still think it looks phoney to this day.
As for this credit nightmare coming off my credit report? Fat chance. I settled in 2005 and this "charge off" is still on my report. The big three credit agencies won't remove it - so much for it coming off in six months! The debt should show as settled, but it still shows as a charge off.
My second settlement (I only signed up with two cards) came about after I'd received a letter from an attorney that said the collection agency for the credit card company had turned me over to a local attorney and they were going to take action against me. I called Debt XS and after being passed around to three people, they finally told me that I should be concerned because the collection agency had hired a local attorney.
The Debt XS representative said I should call the attorney and make first contact. I was floored. Debt XS had always said NOT to call the collection agencies. So I called and made the contact and worked my own settlement. I received a call from a representative at Debt XS a couple of days later asking about my case. Someone had picked up the fax of the letter I'd received and now someone else was working the file. I told this person I'd contacted the attorney's office and they flipped out.
They said that I had misunderstood what their representative said (not that he made a mistake - "I" had misunderstood!) and I shouldn't have started negotiations. Debt XS then contacted the attorney for me (how kind of them) and started their negotiations.
I ignored them and finished the settlement on my own.
My credit will take years to repair now. I have lived in shame and disgust for years and I'm so sorry I ever did this. If you're falling behind in payments or if you need help, contact the credit card companies. Work directly with them. Nothing ventured, nothing gained. They're not the big, bad wolf. Talk to them. Communication is key. I'm so sorry I did this debt settlement thing. The next few years will be spent repairing my credit. I had perfect credit before this - what was I thinking?!
Beware Debt XS!!
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