Debt Resolution Specialists

This company offers to negotiate debt settlements for a fee. According to the company's contract, the consumer pays an initial fee of $100 to $200, and a fee of 5-8% of the total debt after a settlment has been achieved. Their contract stipulates that if payments to credit card issuers are current upon enrollment, that the client is to stop making payments. They acknowledge that this is likely to affect the customers' credit rating and that late fees , penalties, and interest may accrue. The owner of this company, Todd Baker, also owns Briggs & Baker which has an unsatisfactory business performance record with the Better Business Bureau. Complaints received for Briggs & Baker suggest that they failed to negotiate and pay debts as agreed. Many of the complaints remain unanswered or unresolved, and clients did not receive refunds. A seperate report is available upon request. Complaints received by the BBB about similar services llege: that creditors continue to harrass them, fees and interest continue to accrue, their credit is worse than before, that creditors were not contacted, and creditors sue for payment. These companies rely on negotiating with the creditors for a lump sum payment, which generally requires the consumer to withhold payments for an extended period of time. 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.