I have a debt with professional Debt Mediation and i agree that it is my debt. I am willing to pay and they are sending my agreement with the settlement in an email and they want me to call tomorrow with my credit card information to pay my half of the debt. They also stated that my credit report would not take a hit and all liabilities towards me would be erased and go to the next person that needs to pay their half of the debt. As long as i have this information in email form, am i safe to submit a credit card payment or will they try to deduct the entire amount of the debt? Should i set up an Efax.com account and tell them to efax the information to me? Thanks for all answers
Robert W GambrellChapter 13 Bankruptcy AttorneyOxford, MS ·
If you settle a debt for less than the balance owed, an entry is placed upon your account that states that the debt was settled and there is a $0.00 balance. This entry is a negative entry, but is better than having the entry show the the debt is still owed and is in collection. The more time that passes after the settlement, the less the effect on your credit score.
When you settle a debt, the creditor is supposed to send you a 1099c showing that the canceled debt is income. If the canceled debt is less than $600.00, the creditor is not required by the IRS to issue the 1099c, but the cancellation of the debt is still income under the IRS Code, unless you were insolvent prior to the cancellation of the debt.
If you settle, you need a written document, which can be an email, that clearly states that Professional Debt Mediation (PDM) has the authority to settle the debt and there will be no additional funds owed once the agreed upon amount is paid and that the credit bureaus will be notified stating that the debt has been settled.
Since PDM is a debt collector under the Fair Debt Collection Practices Act (FDCPA), you might be better served by meeting with an attorney handles FDCPA. You should also check out this link:
http://www.bbb.org/north-east-florida/Business-Reviews/collection-agencies/professional-debt-mediation-inc-in-jacksonville-fl-8432/complaints
Creditors are famous for pulling scams and once you send the money you will never get it back. Your best bet is to have an attorney review your agreement and make sure it is irionclad before sending the funds. You will pay something minimal for peace of mind
Mark Theodore TischhauserLitigation LawyerTampa, FL ·
There is no way to be sure when you deal with telephone and e=mail contact. Its simply ripe for scams. You will have to satisfy yourself that they are legitimate or take your chances that they are not.
I am skeptical when they say they will "erase" anything. I would make sure you get everything in writing, clearly explaining what they will do for you.
