An Early Victory for a New Client

Last week we settled an account for a client who just enrolled at the end of April.  Our client signed the Limited Power of Attorney we provided in his Enrollment Application, as all of our clients are required to do, which authorized Provanta to negotiate debt settlements on his behalf.  We had to send the creditor a copy of the Limited Power of Attorney three times in May before the creditor finally acknowledged that we had proper authorization to speak on behalf of our client regarding this account.

In a different letter we faxed to the creditor office in June, we offered to settle the $8747 account for $2625. A Provanta negotiator contacted an agent at the office to follow up on our offer. The agent said that his manager was reviewing it and would get back to us. Two days letter, they accepted the offer. The account was settled at 30% of the original claim.

This settlement was possible at this early stage of our client’s program because our client had provided a substantial lump sum for the program up front. He was recently laid off and although he will be receiving unemployment, he knew he would not be able to keep up with his minimum payments. With unemployment on the rise nationwide, our client knew he had to find a solution to his debt as soon as possible just in case he could not find a job within a reasonable time frame. He decided to liquidate a significant amount of his savings so that he could offer it as settlements to his creditors through our program. He decided to do this before he even contacted Provanta.

Whether to use savings, investments and/or retirement funds to expedite the debt settlement process is always completely up to our clients. There can be benefits to doing so such as shorter programs, litigation avoidance, lower monthly EFTs, etc, but there can also be some risks as well such as a smaller emergency reserve or a postponed long term goal such as a house or retirement. This is why our Program Managers are always available to speak to any client who is debating such an issue.

(Ref. 1515)

Technorati Tags: debt settlement, debt settlement percentage, unemployment, financial hardship

Related Posts

• No Related Post