The debt settlement industry landscape is always changing. When you consider all of the different credit card banks and their evolving internal policies and procedures, that should be no surprise. From time to time, it seems one bank or another proclaims they will no longer work with debt settlement companies.

Debt expert Steve Rhode recently learned from Chase Bank spokesperson Peter Hartwick that Chase no longer works with debt settlement companies:

Chase will not work with debt settlement companies. Customers who notify Chase that they are working with a debt settlement company will be advised of this policy and encouraged to work with Chase directly or to contact a non-profit 501(c)3 licensed credit counseling agency.

Hartwick also said:

We are committed to working with customers who are experiencing serious financial difficulty. In this challenging economic climate, Chase understands the need for more alternatives and greater concessions to assist financially stressed customers in making credit card payments.

What does this really mean?

Settlements can still be achieved, but in all likelihood, they will have to wait until the delinquent account reaches 180 days past due and is charged-off. At this point Chase will likely either outsource the collection activity to a collection agency, but still retain ownership of the account, or they will sell the account to a debt buyer, who will then initiate their own collection activity. In either case, debt settlement companies should be able to reach settlements at that time.

Do it yourself debt settlement not affected

The good news is consumers who choose do it yourself debt settlement will not be affected by this and should be able to reach settlements before 180 days past due, provided they have accumulated the necessary funds to do so. The Chase policy only pertains to debt settlement companies.

Why the do it yourself method is superior

It can be summed up in 3 reasons:

1. Save lots of money

2. Retain flexibility

3. Maintain better creditor relations

You can absolutely achieve the same results as a debt settlement company without paying thousands of dollars in fees. All you need to know is how the collections process works and how to make it work to your advantage. Don’t be fooled into thinking you need to hire a so-called professional to do it for you. Do it yourself, save thousands of dollars and get out of debt faster as a result!

{ 0 comments }