In trouble w/debt and need advice....can someone help?!

Submitted by Anonymous (not verified) on Tue, 05/15/2007 - 16:01
Forums

Okay here's what's going on.....we recently turned our credit cards all to a debt settlement company (about three months ago). Their name is Financira, they are located in Connecticut and we live in Wisconsin. Btw, if anyone knows anything good or bad about Financira, we'd appreciate you sharing anything. Right now we're feeling very insecure about them, still wondering if turning to them for help has hurt us more rather than help us. I admit I didn't do much research on this company before deciding to go with them. Our minimum payments were getting to be too high and we weren't able to continue paying $500+ every month for credit cards alone. So our first initial reaction was 'okay that's great they'll reduce our debt by 50%, plus we'd be paying $250 instead of $500/mo. Sadly our mistake was that we didn't understand the diff. between debt consolidation and debt settlement, and they happen to be a debt settlement company, and after reading much more on how debt settlement works, I'm thinking we made a huge mistake settling with Financira, and should have done our homework and gone with a debt consolidation co. instead.

Everything is a big mess right now because we're not happy with what they've 'provided' so far...which is really nothing, I mean we knew there were fees, we figured if they can help us, we'd be willing to pay the fees... but really they have done nothing to better our situation....instead I fear that we're in a deeper hole now than we were 3 months ago, because 3 months ago, we were not behind in payments, we managed to do whatever to make the payments because we didn't want to hurt our credit. We had good credit before settling withe them. Since then we've had late payment fees added and one of the creditors, BankofAmerica has turned our account to Fredrick J. Hanna & Associates threatening a litigation suit. We've made 3 payments to them so far of which NONE of the creditors have seen any of that money and our 4th scheduled one is coming up next week. We get calls here and there from the creditors regarding the other 3 accounts, but with BOA the lawyers are constantly calling trying to settle and threatening the lawsuit. We've contacted Financira several times and all they just tell us that they are working with the creditors and not to worry they will take care things. Yet we just received a call this morning from the lawyers that they've spoken with Financira and they are not doing anything to our benefit and that we need to reconsider payment options.

So I guess my questions are:
Does anyone know anything about Financira? I checked the BBB on them in Connecticut and there seems to be no complaints on file.
Should we just stick it through with them?
Can we get out of our contract with them and what we've paid them so far, will we get any of it back?
If so, will a consolidation company still work with us?
No judgement has been entered as of now so should we just pull out now and try to settle something on our own?
Because I am almost sure if we continue paying Financira and rely on them to 'represent us' BOA will pursue the lawsuit and then we'll be slapped with a judgment on our CR.

Any help is greatly appreciated, thank you.

If memory serves correct...Hanna & Ass. love to violate the FDCPA...
There are plenty of posts in the debt forums about them, there might also be posts about Financira, too.

Yet we just received a call this morning from the lawyers that they've spoken with Financira and they are not doing anything to our benefit and that we need to reconsider payment options.

A collectors job is to get money. I am doubtful that they really tried Financira. Give your settlement company a call...I think they'll tell you to keep a communication log.

I also have to wonder if they violated the Act by contacting you instead of Financira. Not sure, but it is a possibility. You do have the right to send them a letter revoking their ability to communicate with you over the telephone--written (snail mail) form only. This helps to cut the crap. If you're only 90 days behind, and unless the amount is really significant, I do wonder if BofA will litigate (and that is their decision, not Hanna & Ass.).

I am certain you can discontinue Financira, and persue other options. Likely, you will be responsible for attorney fees, though. I am also certain you would be able to find a consolidation company. Research them before you sign anything.

No judgement has been entered as of now so should we just pull out now and try to settle something on our own?

I would doubt that a case has even been filed.

Personally, myself, knowing what I do about your sitch, I would pull out, chalk up the lost money and dings on the credit report up to a learning experience. You will have plently of time and opportunity to fix your credit.

Tue, 05/15/2007 - 16:50 Permalink
kjabar (not verified)

Thank you for your reply, morningstar.

After reading thru some of the threads here and other places on debt settlement companies I really do hate myself for turning to those scumbags. I wished we had done more research and moreso found this forum before deciding to throw our credit down the drain. I realize now that when signing up with Financira, they did not bother to explain to us how the process worked and we didn't ask, assuming they worked the same way as a consolidation company did. Now that we're in a hole, we're not really sure what we should do, but judging from what everyone has stated about these companies maybe our best bet would be to pull out now before any of our accounts get charged off. And once we get out of there, can we get our money back? To this date we've given them $738, and I'm pretty sure they haven't settled any of the four accounts we handed over to them.

These are the CCs and balances:
BOA $6000
CapOne $6000
CapOne $450
WaMU $2000

And then what next? Should we try contact the creditors and explain our situation and try to work something out or go with a consolidation program? The only thing is if they want a lump sum right now, we won't be able to do it. I lost my job last month and now it's just my husband's income we're living off of, which is really little to nothing. We have no savings and rent+utilities are more than 80% of what he brings home...as a matter of fact we're having to move in with his parents for a few months till we get back on our feet again. Actually, we have an automobile we managed to pay off two months ago. So I'm afraid that if BOA goes thru with litigation judgment they will come after the car plus garnish his wages. The account is just in my husband's name and so I really don't want him to have to appear in court.

Also, are there any consolidation companies anyone had a good experience with and can recommend? Someone mentioned Genus, but I just read this article on these companies and Genus is on this list in which you should keep away from, so I'm clueless as to where to start in researching for consolidating.

I also have to wonder if they violated the Act by contacting you instead of Financira. Not sure, but it is a possibility. You do have the right to send them a letter revoking their ability to communicate with you over the telephone--written (snail mail) form only. This helps to cut the crap. If you're only 90 days behind, and unless the amount is really significant, I do wonder if BofA will litigate (and that is their decision, not Hanna & Ass.).

God knows how much it's at now. If deciding to settle this ourself, should we call BOA or the lawyers? And because the lawyers are calling us now, does it mean they've sold the debt to them or are the lawyers just representing the creditor?

Wed, 05/16/2007 - 13:18 Permalink

And because the lawyers are calling us now, does it mean they've sold the debt to them or are the lawyers just representing the creditor?

You can ask BofA if they still own the debt. Since it hasn't been charged off yet, I would assume they do. Also, be advised you are likely speaking to a collector that is misrepresenting him/herself as an attorney. While it is likely that Hanna & Ass. have an attorney somewhere in the office, you are probably dealing with a shady collector. Send the letter revoking their right to call...be specific in still permitting written communication from them.

And once we get out of there, can we get our money back? To this date we've given them $738,

Read your contract. I am pretty sure there is a stipulation that if you back out, you become responsible for Financira's time working your debt. It is possible that you would end up owing them. I can't say for certain, and I'm not trying to scare you, I'm just trying to prepare you for some of these possibilities.

Should we try contact the creditors and explain our situation and try to work something out or go with a consolidation program?

I can't tell you for certain what to do, but personally, I would pull out of Financira. You can attempt consolidation on your own--the debt forums have a nice DIY section. I would encourage you to be up front with your creditors. I don't think they're going to demand a huge payment, that's more of a collection agency tactic, or what you'd do if attempting to settle. If you DIY, you can try to negotiate for the removal of your late payments from your credit report. A consolidation company can help save you some stress and energy. You'll have to figure out what is appropriate for your sitch. Look in to it, but don't sign anything until you've done your due diligence.

If you're really worried about losing the car, is there a family member you implicitly trust to whom you could sign over the car?

Last thoughts...register on the debt forums. Give your phone number, and you'll get a counseling call (it is still a solicitation...make sure you research before you sign anything if you do use them). There is no obligation to use their services, but they can help you go over all of your options. Also, registering there lets you use a private message feature, and other members might be able to refer you to a good company, just beware of shady solicitors...the internet is just as full of helpful people as it is shysters.

Wed, 05/16/2007 - 14:34 Permalink

God knows how much it's at now. If deciding to settle this ourself, should we call BOA or the lawyers?

Assuming that BofA still owns the account, you would probably be in better hands dealing with BofA, if they are willing to negotiate with you. Often, companies hand a debt over to a CA, and do not wish to get their hands dirty. At some later point in time, they may sell the debt to a collector.

Wed, 05/16/2007 - 16:22 Permalink

thank you for all the info. morningstar. We would be interested in talking with someone about what options are available. I registered at the debt forums, but where do I give my number...can you provide a link? I'm sorry, forums aren't new to me, but these boards seem to be a little diff. from the ones I'm used to.

Damn, looks like we're screwed! I looked at our contract and the retaining fee is what we pay them regardless we stay with them or not, which is just slightly under what we've paid them so far...so we're not getting any of the that money back! Wow, I'm just really kicking myself right now.

Yeah, we can always change the title of the car over to his mom. If it comes down to it, we may have to do that.

Wed, 05/16/2007 - 17:13 Permalink

Use the "free signup," not the "community signup."

It should ask for some contact info, and there is also a little pull down menu that asks how much you're in debt.

Wow, I'm just really kicking myself right now.

Easier said than done, but try looking at it as nothing more than a lesson learned.

Best of luck to you.

Wed, 05/16/2007 - 20:33 Permalink
Shayne (not verified)

I joined Financira about 11 months ago. My situation went from bad to WAY BAD! I now have 2 judgements.......... Credit is just trashed.....

Financira did NOTHING! Well they did make sure their fee was paid. $1500.00..... I was able to get back $1100 that was in my "savings account".
But their fee they kept.
Any question I asked of them, I got we cannot give out legal advice.
They did not hand out ANY advice! Well they did say to go talk to a lawyer a couple times. Course this was after the judgements had been entered.
And once a creditor starts legal action Financira DROPS THEM FROM THEIR PROGRAM! You end up in worse shape than when you started with them!

Yes, I would stay as far away from them as you can!

Tue, 05/29/2007 - 13:15 Permalink
Guest (not verified)

Financira has been very forward. They mentioned their fees, they mentioned that i can still have legal action taken against me by my creditors, and they mentioned the impact their program would have on my credit. I'm in a very difficult financial hardship, this program makes sense for me. I've read other posts about people who are happy with them too.

You should reconsider, they can really help you out. It is a 36 month program for a reason, i'm sure it takes a while for the funds to build up so they are able to settle the accounts.

Stick in there, you've already paid quite a bit into the program, you are only making things worse by dropping out.

Mon, 06/04/2007 - 23:57 Permalink

Glad that you've had a good experience, guest. Unfortunately, debt settlement isn't for everybody, and Financira may not be for everyone considering or participating in debt settlement.

Tue, 06/05/2007 - 10:27 Permalink
tebdrs (not verified)

As I have seen with Settlement things start off shaky but in the end it evens out. Alot of times people confuse settlement with consolidation which causes alot of problems. My suggestion is to keep the lines of communication open with your CSR at Financira.

Thu, 06/07/2007 - 23:26 Permalink
Quintin (not verified)

have been working with Financira for about a year now. At first things were kind of rough becuase honestlyI have a problem with trust and of coarse was to busy and I did not read my materials and to be honest the information intialling provided to me I was so........ stressed I will admit I did not fully understand it! Im sure you all undertsand how your debt and all of other lifes drama can stress the hell out of you!!

I called frantic and in my wits end ready to cancel about 3 months into Financira's program and becuase like you I also thought I was being taken advantage of but honestly it was my own foolishness.

My customer service represent went through the whole contract and the follow up matierials they sent me to understand the program that I of coarse did not read. But once I did it came together and so far 2 of my 5 creditors have been paid. They told me Bank of America can be a tough one but that was the first one they settled!!

When I first started Bank of America and that law firm Fred Hanna said they would never.....settled with a 3rd party!! BUT THEY DID!! So far things are going very well for me and Financira!! I wish I lived alittle close to CT so I could thank them inperson for helping me. They are always there for me when I get frazzled!! I would say call your rep keep them updated. They told me to send the correspondance to them and that seemed to really help get the creditors off my back! I wish you others luck in your debt relief ventures!

Fri, 06/08/2007 - 14:31 Permalink
jillie07 (not verified)

I recently inquired online with a company called consolidated credit counseling services about debt consolidation and somehow this company Financira called me on my cell phone. I do not know how they got my number but at first I thought they were the answer to my prayers but after reading topics on this site I am definately not sure about them now. I owe Bank of America $3000.00 and Citi Financial $3300.00 and I am having problems making the payments. I also own 4 other small credit cards with Capital One. I would give anything if I hadn't gotten my self in this mess. I need to consolidate but I can't afford to make a payment to a debt consolidation company that is just as high as what I am paying on all of my payments combined now. What would be the purpose of that? I do not know what to do. Does anyone have any suggestions?

Thu, 06/14/2007 - 19:26 Permalink
Anonymous (not verified)

I can't give you an answer to your question. But I'm sure someone here will..

Financira IS NOT what you are looking for..........

Wed, 06/20/2007 - 03:10 Permalink
guest (not verified)

I would definitely consider debt settlement if i were you. There are a lot of benefits to joining if you are in a real bind. It isn't for everyone of course, but the alternative of consolidation (more expensive) or doing nothing, can be very costly in the long run. Settlement can save you a lot of money.

Financira has had positive results, there are just as many positives on this post as there are negatives, and other boards have positives too. The negatives seem to be coming from people who got nervous or didn't read their contracts. Prepare yourself and ask questions.

Sun, 07/15/2007 - 04:20 Permalink

Hi,

It is always wise to read any contract and understand it. Companies have their policies and it does not change for anyone. You have to know what you want and expect from a company when you work with it only then take a plunge.

Good Luck.

Mon, 07/16/2007 - 04:55 Permalink
orgastic (not verified)

You are not welcome here, and we will not hesitate to delete your posts--Morningstar

Thu, 09/06/2007 - 19:24 Permalink

I agree. There IS as many 'positives' as there are 'negatives.' There was another thread, I was reading about, concerning a certain credit card. I had 'postive' results', while others had' nagative' ones. However...whatever, your situation,...DON'T GIVE UP!! This forum is the place to be to gt help and advice!!

Tue, 09/11/2007 - 10:13 Permalink
Guest (not verified)

This company is a scam. They will charge you lots of money and take it from your bank account automatically, then leave you with your creditors and their attorneys. BIG, BIG SCAM COMPANY. First in CT now TEXAS, next wherever they can avoid prosecution from an attorney general's office for scamming people out of their money.

Fri, 10/05/2007 - 02:24 Permalink
Donnie B. (not verified)

Real Slick "settlement" company with deliberately deceptive practices.
As to speak to a manager or owner and you get a voicemail who's mailbox is full. very negative experience.

Fri, 10/05/2007 - 02:31 Permalink

Well its really sad to hear that you had negative experience with the company. But i think its always feasible to know the pros and cons before you take a plunge.

Just my opinion.

Fri, 10/05/2007 - 05:13 Permalink
weezerdog (not verified)

had them 10 months no settlement and have court date being sued from hanna no help from them and no money returned over 1000

Fri, 10/05/2007 - 20:07 Permalink

Debt settlement company will not help you if you are sued. Did you read the terms of the contract? Did u check whether payments were being made? Financira has been a trouble for lot of people but sometimes its the fault of the consumer who do not read the contract properly because of which such companies take advantage of you.

Be very careful because this is what might ruin you in the long run.

Sat, 10/06/2007 - 06:05 Permalink
Yescenia (not verified)

I've been with Financira now for 7 months. At first it wasn't so bad. A couple of days ago a sheriff stopped by to leave some papers JC Penny. I have court next year. I called Financira and apperantly the law office of Kramer (I believe) is refusing to speak to Financira. The law offices only want to speak to me regarding a settlement. I'm a little nerveous to talk to them. I am to contact a Christopher Lee. He actually called me months ago at my work and was REALLY rude. The idot stated yelling at me. I didn't even over react in the first place. I was really come. Anyway, not sure what's going to happen now. I've never been to court for anything in the past. Before joining Financira my credit was good. Never late in any of my payments, but was getting to that stage. Anyone know what's going to happen to me when I present myselt at court? I'm freaking out! Plus, I called the law office and they don't answer!!! Not sure what to do. Please I need some advice!!

Fri, 12/07/2007 - 20:58 Permalink

Hi Yescenia,

Financira is tough to deal with. But you need not worry. They will help you out. Just remember to carry all the relevant documents with you to court.

Tue, 12/11/2007 - 05:26 Permalink
rick (not verified)

I had spoken to a representative from Financira in regards to my debts. They said since I was not behind and paid more than my minimums I wasn't right for settlement. They told me to consider consolidation. I didn't realize there was a differnece between settlement and consolidation. I appreciated their honesty enough to have a friend who was behind give them a call.

I researched settlement after talking to them and saw that things like court action can happen whether your with a settlement company or not. Based on my experience it sounds like you didn't read over the contract, or research your choice before signing up. My friend has been with them for 8 months or so and they have been a big help.

Wed, 12/12/2007 - 22:25 Permalink

Your friend is lucky to have a good experience. What about you? Did it go well with financira?

Thu, 12/13/2007 - 05:24 Permalink
rick (not verified)

I went with a consolidation company. Financira does only settlement. I think that I am a smart consumer, and I looked up what they told me. The information on settlement was out there, and followed what they said. My friend has been helped by them. He was in a spot where bankruptcy was looking like his only option, but now he is able to avoid it.

It sounds like some people don't really look into what they decide to do. Either that or they heard a lower payment and nothing else. I know that I never really knew there was a difference between consolidation and settlement. A lot of problems could be cleared up by doing some simple research. From what I saw in my conversations with them and my buddy's time with them they aren't a scam, its just people decided on settlement without knowing really what it is.

Thu, 12/13/2007 - 14:52 Permalink

That is the major problem with most of us. We are ill informed and we blame some company. No body is keen to do any background checkup or a research. It is like playing with hard earned money.

Fri, 12/14/2007 - 09:56 Permalink
Christy (not verified)

i have 4 garnishments and my credit is trashed. there's a difference between debt settlement and debt consolidation. i reported this company to the BBB and they want to settle with me and pay me back. what about my credit. there is something wrong if they want to settle. i'm going to talk to a lawyer. stay away this company is a fraud!

Fri, 02/29/2008 - 22:34 Permalink

Wow so many different opinions on this company. I am wondering if the ones they actually helped was the ones already so far behind on payments. Kind of hard to figure this all out. If you aren't behind on any payments and your crdit isn't bad you could possibly go to a bank and take out a loan and get them all combined. The advantages in that are you can drive straight to the bank if there are problems, the interest rate and payment rate are fixed and there usually isn't a question on their creditability. (SP?) Just a suggestion. I know this isn't what works for everyone.

Sun, 03/02/2008 - 01:18 Permalink

I think that consolidation would be a great idea fireyone, if they credit is still in a state where this possible, great advice fireyone.

Sun, 03/02/2008 - 01:34 Permalink

It just sounded so much simplier than having to research so many companies and trying to find out which ones were creditable.

Sun, 03/02/2008 - 01:36 Permalink
kemet (not verified)

Debt consolidation can have different meanings to different people. As most people have not been in this kind of trouble before, it is important that you know what you are looking for and what to expect.

Debt consolidation can mean a loan to consolidate all your debts into one, like refinancing your house or getting a debt consolidation loan from Household Finance or something.

To me, getting a loan to pay off a loan is like giving seawater to a shipwrecked, thirsty sailor! It is bad for you in the long run. If it is a refinance, it is even worse because now you are exchanging unsecured debt, which can be handled in bankruptcy, for secured debt that cannot be addressed by bankruptcy, which may cost you your house if you get in trouble again.

The other type of debt consolidation is offered by those Consumer Credit and Counseling Services. I would not recommend them. For starters, they are an arm of the Creditors, bought and paid for by them. They were set up by creditors to make sure they got their money. Don't let their Non-Profit status lull you into a false sense of trust, it means nothing to you. Several in fact are being investigated by the government for misusing or misrepresenting their non profit status.

If you study the posts and advice on this forum, you may be able to achieve the same type of relief from creditors as they can. The truth is that every creditor has a "Hardship Program" which is what the CCCS will put you on. It is a pretty routine thing, they do not "go to bat" for you with your creditors. They do not negotiate custom payment plans just for you, Bunky. Every creditor has specific guidelines for their hardship programs.
If you have the time and stomach for it, you can negotiate your own hardship arrangements with your creditors, saving yourself money which you need more than the CCCS!

As far as your credit rating goes, your being represented by a CCCS, is not looked at benignly by your creditors, as a matter of fact, being on one of their programs, you are considered to be in Bankruptcy's Waiting Room!

Hope this helps!

Bill

Sun, 03/02/2008 - 03:33 Permalink

I wasn't aware there was such a thing as a hardship program. I wonder why this wasn't offered to me years and years ago when I ran into a credit problem on 1 card. Wish they would have for it caused me plenty stress over the years. They would have nothing but the full payment. I just figured if you got the bank to take them over it would stop all the penalties and get alot lower interest rate so they would be paid quicker, but I do see your point. I just thought it would be something to consider.

Sun, 03/02/2008 - 14:12 Permalink
peekaboo (not verified)

From reading this blog it seems like people dont really look into what they sign up for. I get the impression that people just look at numbers and not the bottom line or implications. They only quick fix to clear debt is to win the lotto.

It seems like a littlwe research into a decision would save a lot of headaches.

Fri, 03/14/2008 - 21:00 Permalink

Sure peek a boo. You are probaly right but if you had an account over a long period of time and it wasn't until much later you had finacial problems are you going to remember every single line on the fine print. Most people believe it or not aren't in this situation cause they want to be.

Fri, 03/14/2008 - 22:51 Permalink

People don't just chose to be in these situations, stuff happens and sometimes you can not control it.

Tue, 03/25/2008 - 01:50 Permalink

I guess some of us hasn't been faced with some life altering situations. Life is a long road..sooner or later we all hit a few bumps.

Wed, 03/26/2008 - 00:07 Permalink
GeorgeTX (not verified)

I agree, you shoud DEFINETELY read your contract and ask the financira staff whatever question you have, they will help you out.

Worked for me and now i have a clean sheet and i am debt free !

Thanks to those guys that some people take pride on bad mouthing.

You can get more info about financira at financira.com

Fri, 06/12/2009 - 02:38 Permalink
angela hemingway (not verified)

i wish all of you with bad exp w financera would go to bbb and file a complaint...put them out. i did and filipe the supervisor is saying wrong company. if thats the case how did i find them? you search the company you are filing a complaint on by the phone number...duh. i am not done with them yet. i am going to the news media next. can't afford lawyer. one of my cc's that supposedly settled sent me to collection and it is over half of original amount. ticked me off. after i paid about $3000 a third of that was fees they took out first. my debt wasnt that high to begin with used my grandfathers inheritance and started this in 2005 after i got laid off. then they wanted me to print and send my credit report to them. big ? for me. credit card consolidators want me to send them my report...think not. come on everyone file w bbb.

Wed, 10/28/2009 - 16:18 Permalink
roccod14 (not verified)

Fincancira took our money for 3 years and only paid out $100.00 to one of our 5 creditors. We ended up having our wages garnished and all went to arbitration and financira stopped talking to us and refused to give us any money back or pay any thing to any creditor.

They are a SHAM!

Fri, 06/11/2010 - 14:34 Permalink