I'm on a DSP, How Long Will it Take For My Creditors to Accept Settlements?

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I'm on a DSP, How Long Will it Take For My Creditors to Accept Settlements?

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We are answering our customer's top questions regarding their participation in the Debt Settlement Plan (DSP).

We want our customers to find continued success by fully understanding their plan and what it takes to be successful.  

This month's question: How long will it take for my creditors to accept settlements?

Each customer's situation is different and there are a variety of factors that go into a settlement agreement.

Here are some things to consider regarding settlements. 

  • Factors that can affect settlements.  There are many factors that can affect your settlements, including the type of creditor, the creditor's internal policy, the length of delinquency, and the amount you owe.
  • Debts are often sold.  Keep in mind that creditors often sell or move collection responsibility to third party firms like collection agencies or debt buyers, which can actually sometimes work in your favor when securing the best deal.
  • Timing and patience.  Timing and patience are extremely important when securing a settlement agreement. On average, most people experience their first settlement after six to eight months of consistent payments. 

DSP is not a "quick fix" and may not erase your debt overnight. Patience and consistent payments are essential ingredients to success with your DSP.  

If you have a question you would like to see posted please feel free to leave it in the Comments section or, ask directly in our Ask the Expert Forum.

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  • What if the Collection Agency Creditors Interchange continues to call and tell you that you are making the biggest mistake and that Persels and Associates are a fraud. I tried to give them the number to persels but they refused to accept it. Ive tried several times to reach out to my lawyer and she has not contacted me by phone or via E-mail. I even Faxed the paperwork to 1888-863-8659 and no one has had the courtesy to contact me that it was recieved.

  • Good evening,

    I want to apologize on behalf of P&A for the customer service you have received. It is important to us that your concerns and matters regarding your case are answered and handled in a timely manner. I have escalated your concerns regarding contacting your attorney. This is not how we treat our customers nor is the service that we are committed to. I am sorry that you have been unable to connect with your attorney, and rest assured this matter will be handled immediately. Hang in there, unfortunately the collection calls are a normal part of the process.

    Thanks,

    Suzanne

  • what do you do with first payment how long does it take to be used on the cards

  • I too am awaiting a call from my attorney. I was told that my attorney would contact me as a coutesy after my first payment. I have not gotten any calls yet or seen any missed calls or messages from my attorney. When will this happen? I informed P&A that as I have a busy schedule, if they can't reach me on the phone, to please leave a message & I would get back to them. I still have not gotten a call however. My concern that I wanted to ask my attorney is the fact that P&A informed me cease & desist letters would be sent to all creditors except Citibank & Bank of America as they stated this may increase collection activity. This is NOT what I was told when I signed up. I was specifically told that cease & desist letters would be sent to ALL my creditors after my first payment. It is cocerning to me that 2 of the creditors I carry the largest balances with are not being informed that I am now on a DSP in an attempt to negotiate my debt.

  • Good morning warrensheldon,

    With settlement your creditors will not receive monthly payments and you may receive collection calls. It is important anyone who enrolls in a settlement program fully understands how it works and the repercussions. Essentially what you are doing is asking a creditor to accept a much lesser amount than what is owed. In order for the creditor to entertain the idea of a settlement the account must become severely delinquent. It is important that you fully understand the risks of settlement before proceeding.  I want to explain a few things to answer your question. The amount you pay every month builds into an account called an “escrow account”. Once we have enough in escrow to offer a settlement, we will submit it. This process may take months or years.

    Thanks,

    Suzanne

  • Good morning auummmmm,

    We have escalated your concerns regarding your account. It is important to us that your concerns and are answered and handled in a timely manner.  I am sorry that you have been unable to connect with your attorney, and that you feel you were misinformed upon enrollment. Every customer's situation is different which is why speaking with the attorney assigned to your case ensures you understand everything involved in your situation. Hang in there.

    Suzanne

  • Thank you for the response. I will await my attorney's call. I just want to clarify however that I don't FEEL I was misinformed. I was specifically told cease & desist letters would be sent to ALL my creditors upon enrollment. Only when I was speaking to P&A a few days ago regarding another matter, was I told that that Bank of America & Citibank are not sent cease & desist letters. Hence I WAS misinformed.

  • I have yet to recieve a copy of my cease and desist letter as I was told I would recieve. I have only one creditor (Bank of America). My Lawyer did finally reach out to me via E-Mail several days ago.

  • Hi Downstate,

    I was told that they don't send cease & desist letters to Bank of America or Citibank as experience has taught them this will increase collection activity. Yet they sent a cease & desist letter for you to Bank of America? Coach Suzanne, what is the reason for this discrepancy? Please respond.

    Thank You

  • I would just like a copy for my records as I was told that any letters sent out, I would recieve a copy.

  • I HAVE NOT BEEN ANSWERING ANY OF THE CALLS FROM MY CREDITORS AND INSTEAD LET THEM ALL GO TO VOICEMAIL.  THE ONCES THAT LEAVE A MESSAGE - I DO NOT RETURN THEIR CALL.  PLUS, I FORGOT THAT I WAS SUPPOSED TO KEEP A CALL LOG - IS THIS A VERY BIG MISTAKE AND IS IT OK TO NOT ANSWER THE CALLS.

  • I don't know if this helps, but all your copies should be under "My program". It will show all the cease and desist letters sent out and when and copies of everything for you.  Good luck.

  • BarbraB,

    It is ok not to answer the calls, we realize they can be very frustrating. The reason for the call log is to keep track of where the account is. In many cases creditors will sell off your debt to an outside collection agency or debt buyer. We need to know who has the account so we know who we are negotiating with. You will probably receive correspondence through the mail as well, so no worries. Hang in there!

    Suzanne

  • cdmiller6,

    Thank you for letting the others know, you are correct! Best of luck with your plan.

    Suzanne

  • Does anyone know if once a percentage of your debt is paid - what happens to the rest ? Can you return to the debt management plan with the remaining debt ?

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