The Value of Professional Negotiators

One of the cornerstones of Provanta’s Debt Settlement process is the use of professional negotiators.  As professional negotiators, the settlement team is able to say no to a potential deal — in favor of the promise of a better one down the line much — more effectively than the debtor himself, who may feel guilt, pressure, remorse, or other emotions that cloud his judgment.

Besides objectivity, professional negotiators have the resource of numerous client cases that can be used as leverage, and as a bargaining tool. Having access to case histories allows Provanta negotiators to quickly evaluate a settlement proposal in comparision with other deals that have been made with that agency. It also allows Provanta negotiators to quickly pull up all the open files and use the information to broker multiple-case, large scale deals.

A mountain of debt is much less intimidating if you can hire professionals to move it for you.

Technorati Tags: debt settlement results, debt settlement percentages, debt settlement offers, debt negotiation process

Client Withdrawals

On May 19th, I wrote about our client’s experience with a creditor who was threatening to sue our client even though Provanta had legitimately settled the account, received a settlement agreement letter, and made the settlement payment to the collection agency.  After 6 months of hard work and persistence, we got the law office to accept the original settlement agreement and cease any further legal action against our clients.

I have another conclusion to this story.  The clients decided to withdraw from Provanta shortly after the situation was resolved.  They do not blame Provanta for the situation because they know we did everything by the book.  They understand that the situation would not have occured in first place had it not been for poor miscommunication between the collection agency, creditor and law firm.  However, they are simply upset that the situation occurred at all.  They are disgusted with the complications that can arise when someone (in this case the collection agency) fails to do their part in the debt settlement process. 

We had settled a total of 5 out of their 10 accounts even though the clients had only been enrolled for 14 months.  The current claim of these accounts were $42,798.81 and they were settled for $18,760.35- the clients received a gross savings of 56%.  Even though the clients still have approximately $21,700 in debt left to be resolved and we’ve provided excellent settlements so far, they decided to try to make payment arrangements with the remainning creditors for balance in full.  They know that this will likely cost them more financially and that it can take a much longer to resolve the accounts but they are willing to take that risk instead of the risk of the above mentioned incident occurring again.       

It’s always difficult for Provanta to see a client withdraw before we complete their program. We understand that circumstances change and sometimes a client may need to withdraw because of a job loss or increased medical problems.  For this particular client it’s more difficult because their withdrawal resulted from a collection agency’s mistake and refusal to admit their error, which led to the drawn out and unnecessary process to correct the error.  We do however respect our client’s honesty and decision and wish them nothing but the best.    

(Ref. 1523)

Technorati Tags: debt settlement results, debt settlement litigation, collection attorney, debt settlement process

Smear Campaigns: Idiocracy

It never ceases to amaze me how many other debt settlement (DS), consumer credit counseling service (CCCS), and debt management companies like to sling mud at each other.  All of these debt relief options have successfully existed for many years.  I don’t think DS and CCCS are going away anytime soon.  In fact, if the economy is any indicator, the debt relief industry is really taking off right now.  That being said why are so many companies high centered on spending money on trying to derail the competition?  There are two reasons for this.

The first reason a company resorts to a smear campaign to try and find clients is simply because they have not been in business for very long.  They really have no depth of knowledge, no experience, and actually have no idea what they are saying when they attempt to attack the competition.

The second reason is that a few bad apples may be giving the wrong impression.  Every industry suffers from a few companies that are poorly managed and possibly unethical.  It is a shame that some resort to bad mouthing an entire industry simply because of their experience with one company.  This just goes to show that due diligence must be done up front when deciding on a company to resolve one’s debt.  Two excellent indicators of a company’s track record and stability are: the years they have been in business and their Better Business Beaureu (BBB) report. Provanta has been a member in good standing with the local chapter of the BBB since 1994.

There are many debt relief options.  Regardless of what type of program or what company is chosen to help eliminate one’s debt, make sure appropriate research is performed.  If you feel rushed through the application process and uncomfortable for any reason, take a moment to step back.  Thoroughly evaluate your options before making a decision.

Lastly, don’t work with a company that is spending all their time and effort bad mouthing the competition.  In reality, they probably don’t know what they’re talking about and will probably be out of business within a couple years.  If they spend all their time telling you why you should not be dealing with their competition, you might wonder why they’re not spending it telling you about why you ought to consider working with them. Given two options, A and B, discovering that A is a bad one doesn’t nesessarily mean that B is a good one. Option B must still be evaluated independently.

We invite you to evaluate Provanta.

Technorati Tags: debt settlement, consumer credit counseling service, debt relief marketing, debt management

Technology Nets Results

Whenever possible, Provanta uses technology to streamline our debt settlement program and daily operations. We employ everything from totally digital client file storage to a state of the art phone system. We even use technology to make offers to creditors on our clients behalf with the use of automatically generated offers based upon proprietary client database parameters learned over years to get results.

An auto-offer is a server generated fax that is sent electronically to every creditor on each and every account monthly, where at least a set minimum level of funding is available from the client. The auto offers help assist our Settlements Department by efficiently informing the creditors that funds are available to resolve the outstanding debt.

It is also a great way to initiate contact between Provanta and the creditors, and shows the creditors that our client is making an effort to resolve their delinquent accounts.

It works well, too. Just this month, one particular auto offer was sent to a creditor. The current balance on the account was $7,061.39. The auto offer was sent in the amount of $1,467.00, or 20% of the balance. Two days later the creditor called to accept the offer.

(Ref. 1510)

Technorati Tags: debt settlement, debt forgivness

Being Perfect is Hard But You Still Have to Try

Sometimes our clients are exasperated by the amount of questions our Program Management Department asks them when they call in to request an EFT (Electronic Funds Transfer) reduction or skip.  The line of questioning often includes:

1. What is the exact reason for your request?
2. Is there any other way for you to pay for that unexpected emergency, expense, etc?
3. Can you reduce or cut back on any other expense this month instead of using your Settlement Fund?
4. Have you reviewed your entire budget to determine this? If no, let’s go through it together.
5. Can you pay for that unexpected expense over the next few months instead of all at once?
6. Can you obtain the money elsewhere?
7. Can you increase next month’s EFT to make up for this?
8. Can you increase any future EFTs to get you back on track with your EFT schedule?

It is not our goal to give our clients the third degree every time they call in (believe me, it’s not that fun for our Program Mangers either), but it’s extremely important that our clients maintain the EFT deposit schedule if we are to provide the best results possible for them.  Provanta cannot effectively negotiate for debt forgiveness settlements to creditors if there are no funds to work with.  In addition, if a client reduces or skips their EFTs and does not make up for them in the future, our client’s program will undoubtedly take longer than the original estimated time frame.  Longer programs expose our clients to higher chances of above average settlements and higher chances that the creditor may give up on negotiation process altogether and look into litigation.

This does not mean we deny our client’s request.  We understand more than anyone else that life happens and there will be unexpected emergencies during enrollment.  That’s why we honor most of the requests without having to resort to a suspension or withdrawal of services, action reserved for egregious and repeated abuse of the client agreement.  We just want to make sure the client understands that the EFTs need to be placed at the top of the priority list, along with other absolute necessities such as mortgage or rent, food, utilities, car payments, medical payments and insurance. 

Technorati Tags: debt settlement program, debt forgiveness, debt negotiation, financial settlements, debt consolidation

Why We Love Referrals

Referrals often make for the best clients. Why? Because it is usually a friend or family member that referred them to the Provanta Debt Settlement and Forgiveness Program. A referral usually has the added benefit of seeing how a debt settlement program works before they commit to enrolling. While individual experiences may vary, a referral who has been able to closely observe their friend or family member going through debt settlement process is acutely aware of how successful Provanta is with their settlements, while at the same time recognizing that it’s not a walk in the park and requires a serious commitment. Seeing this track record of success over a long period of time with a client ultimately helps a referral make that decision to contact us and to eventually enroll themselves.

There’s also a secondary aspect, one of trust. One difficulty that Provanta encounters is the self-fulfilling prophecy of creditors and collectors who attempt to sabotage the program. Not all, but some creditors, once aware of the client’s enrollment, will contact the client and inform them that they have made an error, that they “don’t work with debt negotiation companies” — this, in spite of the fact that we can prove that they indeed do. The client then takes that information seriously, and failure becomes self fulfilling because they have lost (or never gained) the trust needed to ignore those creditor admonitions and proceed ahead. Clients that have come by way of referral already understand and trust it can work, so they are far more willing to disregard the creditor’s admonitions (or, better yet, refuse to discuss it with them) and let the program run its course.

Technorati Tags: debt settlement referral, referral incentive, debt forgiveness

The Good and the Bad

One of the largest programs we’ve enrolled into the Provanta Debt Settlement Program belongs to a retired couple who joined Provanta a little over a year and a half ago.  They enrolled with over $240,000 of unsecured credit card debt on over 10 accounts.   

The positive update on their program is that we have settled 5 accounts for them so far.  The total original claim on these accounts was $125,000 and the total current claim at the time of settlement was $148,000.  We settled the accounts for total of $48,000.  The clients have received a gross savings of $100,000.

The less positive update on their program is that they just received a summons from one of their creditors.  The balance on the account is $10,000 (one of our client’s smallest accounts) and the creditor has refused to settle.  In order to try to prevent further legal action we contacted the client to see if they could provide additional funds to pay the balance in full (something we do only in extreme situations).  Unfortunately, they could not.    

Our clients have always been aware that litigation was a possibility and they accept their situation and our services for what it is.  They understand that we cannot stop litigation but we can give their creditors information about their financial hardship to try to deter them from choosing litigation.  Since they don’t have the money to pay this particular creditor they’ve asked us to focus our efforts on the other creditors who have not pursued legal action.  They understand litigation may continue and even possibly turn a judgment, but at this point, there is nothing the clients can do about it and they plan on dealing with it if it actually happens.

We agree with the client’s decision and assured them that even while we work on the other accounts, we will stay in touch with this particular creditor.  They may come around eventually and want to settle in the future because from our experience even legal accounts can be settled.

(Ref. 1507)

Technorati Tags: debt settlement, debt collection lawsuit, client stories, financial hardship, debt forgiveness

Fighting Fire With Fire

Sometimes, it’s like a battlefield…

In October 2007, Provanta negotiated a settlement on a $12,900 account with a collection agency who was representing the original creditor.  As with all settlements, Provanta required the collection agency to supply a written settlement agreement before any payment to them.  We received the written agreement, sent the settlement payment of $5,600 to the collection agency, and saved our clients a gross amount of $7,300. 

Three weeks later, Provanta received a call from a supervisor at the collection agency.  She informed us that the original creditor recalled the account and as a result they could not proceed with the settlement agreement.  This was completely unacceptable to Provanta, for we had a valid, signed settlement agreement that was in already in place, performed upon, and the payment accepted. 

To make matters worse, the original creditor sent the account to a collection attorney who threatened to sue our clients unless they paid the balance in full.  This was the last straw for Provanta, and we contacted an attorney that we have worked with for many years.  He specializes in consumer law and FDCPA, Fair Debt Collection Practices Act, violations.  He was more than happy to assist our clients. 

It took about 6 months and lot of letters to reach an agreement but we finally did.  In the end, the collection attorney agreed to accept the $5600 original settlement agreement, or deal with a lawsuit against themselves, as well as the original creditor, should they persist.

Technorati Tags: FDCPA, Fair Debt Collection Practices Act, debt settlement, accord and satisfaction, consumer law, consumer protection, FTC

(Ref. 1506)

Honesty Pays Off

As mentioned here Provanta clients must have a financial hardship for us to work with them. When a client is forthcoming and presents us with detailed hardship, it very often pays off well. A client with a particularly serious hardship is always a bonus for negotiating.

For example, a Provanta client was out of work for a extended period of time, due to his donating a kidney to his daughter and living off credit cards. A Provanta negotiator presented his hardship with supporting documentation to a creditor and was able to settle an account that had a current balance of $13,067.00 for $2,456.00 or 18.80%.

The opposite is true of those clients who are not as forthcoming. A client that is less than honest with us at enrollment may see a higher settlement percentage. An example would be a client that has assets they did not tell us about such as real estate, or open lines of credit. Many times the creditor or agent will have access to more information about client, such as a current credit report. It very difficult to negotiate a good settlement for a client when it is discovered on the credit report that they just financed a new Hummer.

(Ref. 1505)

Technorati Tags: debt settlement, financial hardship, debt collector

The Most Commonly Asked Question of the Day

“Can I keep a credit card out of the program to be used for minor expenses each month or if there was an emergency?”  The unfortunate, and fortunate answer, is no, you cannot continue to use credit cards while in a debt settlement program if you want to receive favorable results.

The reason why I say the answer is unfortunate is because I understand the comfort of having an emergency credit card handy.  Like most Americans I began using credit cards the day I turned 18 and was set loose on a college campus full of low-interest, introductory credit card offers.  Relying on credit cards for your daily needs and desires is a hard habit to break and like most other vices such as smoking, it is hard to quit cold turkey.  We probably live in one of the most superficial and materialistic times in history and this has been heavily influenced by the credit card companies’ clever marketing message that tells us it’s okay to acheive the American Dream on credit or you can have your cake and eat it too as long as you are willing to pay for that cake 10 years from now because that’s how long it may take you to pay off that credit card bill.  When I realized this, I realized the comfort of using credit cards is not all that comforting after all.

Even though the credit card habit is hard to financially and mentally break, it can be one of the most rewarding and liberating things you can do for yourself.  You are no longer subject the credit card companies’ change in policy, increases in interest rates or minimum payments.  You can plan your life around goals like retirement, a dream house, paying for your child’s college education instead of planning your life around making next month’s minimum credit card payments.   

From a debt negotiation standpoint, we simply cannot help you get out of debt if you continue to use debt.  Our goal is negotiate with your creditors, establish your financial hardship, and work out a settlement arrangement for you.  From our experience, your creditors are likely to review your credit activity during this process.  If they see you are still actively using credit cards they may question your commitment to the program and ask themselves, why should we allow your client to pay us less than she owes, when she is still accummulating debt and paying those creditors in full?   

As for emergencies that may come up during your program, there are often ways to work around those emergencies without relying on credit cards.  Our clients often contact us when they have an unexpected expense and we review their options, review their expenses, and find ways to rearrange their budget.  We will help you through your emergencies as best we can.  So if you have a fear of not being able to use credit cards, think of the thousands of people Provanta has helped in the past 15 years and believe me, if they can get through 2-3 years without credit cards, you can too!  

Technorati Tags: credit cards, budgeting, emergency credit, financial goals, debt negotiation, debt settlement, student debt

An Unhappy Client’s Story

I was finally able to resolve an an issue with a former client, today.  Although he withdrew from the program extremely unhappy, I am proud to say that I was able address his concerns, offer a solution, and officially end our relationship amicably.

The client had been in the program for about 24 months when he decided to withdraw.  His program was estimated to take 36 months but none of his accounts had yet been settled.  He was understandably upset at the current status and demanded a full refund of all fees he paid to Provanta.

When I first received his withdrawal letter, I was very concerned.  It is highly unusual that we would have not settled any accounts for him in the past two years.  Though Provanta cannot guarantee how long any particular account may take to settle, two years is a long time without any results for a client who has been committed to the program (i.e., he has a perfect settlement savings schedule, followed our advice on how to deal with creditor calls, informed Provanta of all significant changes in his situation, etc).  I was determined to find out happened and whether we could have prevented this situation from occurring.

In my research, I was able to affirm three things:  1) Provanta was dilligent in all efforts to contact his creditors and negotiate possible settlements.  2)  His creditors had offered several settlements to Provanta as a result of our dilligence and hardwork.  3)  The settlement offers made by his creditors were high in our opinon, which is based on our experience with these same credtiors in the past.  The unfortunate conclusion was that his creditors were not ready yet to offer settlements that were uniformly workable for our client.  Instead of just accepting their high settlement offers for the sake of closing an account, Provanta remained determined to settle our client’s portfolio of debt in an equitable and wholly workable way in consideration of all creditors. We believed we would eventually obtain such settlements. However, in spite of signing up for a 36-month estimated program, the client decided to leave early.

In my response to this client, I openly stated that I understood the reasons for his dissatisfaction.  I was just as disappointed as he was at the current status of his accounts and quite frankly, I also would have liked to provide him more results him by this time.  I admitted that his situation was rare because most clients who are on track with their program have at least one, if not more accounts, settled by this time.

Personal feelings aside, however, I had to remind him that Provanta cannot control how long the negotiation process will take on any particular account or for any particular client.  The experiences of our past clients can give us insight as to what other clients may expect but we cannot guarantee that all programs will follow the exact same formula and time frame.  Simply put, we cannot force creditors to settle an account before they are willing to.

This was a difficult situation for me because on the one hand, Provanta had performed all the services according to the client’s Enrollment Agreement.  It is true that we have not settled an account yet, but we cannot produce results for someone who has withdrawn, especially one who has withdrawn before the estimated completion date.  Provanta had fully earned all the fees he had paid.  On the other hand, the client is understandably dissatisfied with his program.  Although he acknowledges that everything I described in the previous paragraph he was still frustrated.  This was not an ideal situation for the client or Provanta.

In the end, I offered a him a small refund of the fees he had paid even though he did not have a valid claim for any refund.  It is not something we do often, and rarely something we do when Provanta has zero obligation to do so, but we did so anyway, simply as a gesture of goodwill.  He agreed with my analysis of the situation and he respectfully accepted the refund.

Technorati Tags: debt settlement, client services

I Want The Truth!

“Can you help me? I’ve been speaking with several debt settlement companies but I hear different things from each company. Some say they can help me but others say they can’t. Why? I’m tired of feeling like I’m being sold on a program that might not even be a good fit for my situation. I want the truth!”

The complaint above is common. Almost every day one of our case managers hears a story that echoes this sentiment. At Provanta, the daily order of business is to provide honest and straightforward advice to our clients and prospective clients. Over the past few years, however, it has become apparent that numerous recently founded debt-settlement companies have been aggressively marketing their services to the masses, and as a result, have potentially tarnished the image of the debt-settlement industry. Perhaps you have heard some of the radio ads that promise things like “stopping creditor or collector calls” (nobody can honestly promise that), “halting late fees and interest charges” (only if they agree to do so, prior to settlement), and “huge savings off what you owe” (that’s the idea, but it can’t be promised).

Provanta does not make false promises. We enroll clients with set mutual expectations, where long-term success is the goal. After all, we’ve been settling debts for clients for fifteen years and have consequently come to understand what sorts of client expectations are reasonable, and which are not. Our goal as a company is to prosper through helping those in debt, ultimately achieving a client base that is fully satisfied with our services. Neither Provanta nor its clients are in the least served by either having false or unreasonable expectations.

If what you’ve heard about debt settlement leads you to believe that it sounds too good to be true, stick around. Or, give us a call anytime for a realistic approach to what could be a valuable experience, so long as you know what really to expect.

Technorati Tags: debt settlement, debt help

Why Are My Creditors Not Getting Paid?

If you are enrolled in a typical debt settlement program, your creditors won’t receive any payments until a settlement agreement is reached.

Achieving a settlement agreement can take many months, even years, depending on who your creditors are, the distribution of your debt, the type of accounts you have, and the availability of settlement funds set aside over time. Your monthly payment to the program is being saved in a settlement savings account designed specifically for the debt settlement program. It should not be used for any purpose other than settling your debts. In rare situations, a structured settlement payment plan may be agreed upon where a creditor might receive payment in full for a settlement over a two to four month period. Most of the time, however, payment is disbursed to the creditor on a lump-sum basis only.

If, for some reason, it’s important to you that your creditors receive payment every month, then a debt settlement program is not going to be the right fit. You may wish to consider a consolidation loan (typically via home equity) or a consumer credit counseling service (CCCS).

There is a bigger issue at stake than simply making or not making payments to your creditors each month. It is important to consider what your long-term financial objectives are. If you wish to get out of debt in three years or less and work towards rebuilding your credit, a debt settlement program is really your only option short of filing bankruptcy.

Your credit score cannot improve as long as you are carrying large balances on your accounts (a high debt to credit ratio - see www.myfico.com/crediteducation) even if your payment history is perfect. There are many factors that go into you credit score and it imperative that you know what they are. Even though you may feel limited by not using credit cards and not applying for new credit while in a debt settlement program, taking these steps are essential to eliminating your debt once and for all.

Technorati Tags: debt settlement