Frequently Asked Questions
What is the new FTC ruling all about?
The new FTC ruling, effective October, 27, 2010, states that debt solution companies including , CCCS, Debt Consolidation and Debt Settlement are no longer allowed to charge any upfront fees, including a minimal maintanence fee. Also, beware of attorney based debt settlement programs where a retainer fee is still allowed.
Who do I contact to get an update on the progress of my account?
Please contact our negotiation support team at 877-855-2677, Monday – Friday from 9A.M. to 5P.M. Eastern Standard Time.
Where do I send my payments?
Our program is set up so that YOU, the client, control your money. Every month you will deposit your payment into a FDIC insured Checking or Savings account at Global Client Solutions that is set up specifically for your Debt Settlement Program.
How and when are the creditors paid?
Generally, we will begin the settlement process immediately. Depending on the funds available and debt amount, we can attempt to settle debts from day one. Creditors are paid as the funds that have accumulated reach a certain percentage of the debt amount, we will work to settle that creditor. Once the Settlement has been reached, Global Client Solutions will mail your payment directly to the creditor.
What happens if I cannot make a payment?
Please contact our negotiation support team to make alternate arrangements. This is the flexibility our program offers for the unexpected circumstances.
How will this program affect my credit?
Anything you do besides pay your creditors as agreed will have a negative effect on your credit. All debt programs will have a negative effect on your credit including Consumer Credit Counseling, Debt Consolidation, Debt Management, etc. It is likely that your credit will get worse initially and then improve as we negotiate and settle your accounts. As your individual accounts are settled, we request your creditors to report the accounts as paid in full or paid as agreed. Also, F.S.I. offers a Credit Restoration program which works thru the Fair Credit Reporting Act in disputing and removing negative information on your credit report.
How long will a debt settlement program take?
A debt settlement company will consider many factors in determining the lengths of a program. Typical programs vary from 18 months to 36 months depending on each individual situation: total amount of debt, number of creditors, availability of funds to settle, and an affordable payment to your budget. We will be happy to discuss your situation during your free consultation.
Can I do this on my own?
Yes, you can do this on your own, but it is very time consuming and tedious, without knowing all the laws it is best to hire a professional. With our experienced professionals come our great relationships with creditors and collection agencies and our extensive knowledge with the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA).
What if a creditor won’t negotiate?
Creditors are willing to take something rather than nothing. Most accounts are acquired for pennies on the dollar and they are inclined to accept a reasonable settlement offer. In a rare instance where a creditor plays “hardball”, it is often a matter of waiting for a different phase of the collection process or waiting on the creditor to return with a counteroffer. Since creditors know if you choose bankruptcy they will receive nothing, this is why they are typically willing to settle.
Can my creditors call me at work?
Creditors can contact you at work but once you inform them to stop calling you at work they are required to stop calling per the Fair Debt Collection Act. If they continue to contact you at work we will provide you with the State Attorney General’s Office to file a complaint.
Can F.S.I stop late fees and interest from accruing?
Your creditors will continue to charge late fees and interest, however, with the amount of debt reduced by our negotiations, the savings outweighs the late fees and interest.
When are my accounts settled?
As soon as you’ve accumulate enough funds to make a reasonable offer, we will start negotiating and reach settlements shortly thereafter. If you are able to set aside additional funds for settlement, we will be able to settle your account quicker, in turn, get you out of debt quicker.
Will creditors continue to call?
Companies cannot guarantee all the calls to stop but we will communicate with your creditors you have retained our services and to contact us in the future. Most creditors will follow our instructions but there may be some creditors that will continue to call. Please refer them to our negotiation support team. Some creditors may try to use forceful tactics and there are federal and state laws designed to protect you from harassing and threatening calls.
Do I need to include all my creditors into the program?
We recommend you keep at least one credit card to handle an emergency if one comes up as long as the card has a low balance and you can pay it off immediately.
