PersPersels & Associates - Care One BIG TIME RIP OFF!! Columbia Maryland

Agreed...Care One IS getting me out of debt!  I've NEVER had any problems with them, and if there ever has been any issue, they always contact me (which is hardly ever because they are on top of their game).  I log onto my Care One account every month and continue to watch my debt decrease.  I have not been bothered by my creditors for over a year now...

A Satisfied Care One Customer, Saint Louis, Missouri

I am picking this post to file a rebuttal to soley because it is the most recent post. Other posts have similar comments and instead of replying to each I wish to express my opinions to all, in one. I too, am a client of Persels & Associates. I signed up in December 2008 with $60,000 in credit card/loan debt. My monthly payments to Persels were figured to be $545.50/month for 60 months (5 years). Out of that $545.50, a little more than $400/month for 18 months would go to Persels for legal fees. The other went into our escrow account, which by the time the 60 months was up, we would have accumalated approx. $25,000 in escrow. In case you are wondering, the total we will have sent Persels over 5 years is $32,730. Again, our debt was over $60,000, so to pay only half of what we actually owed, made sense to me. Sure, my credit was going to be bad the whole time, but it was headed in that direction regardless. Once you are finished with the program, you slowly rebuild your credit, that is what they explain to you. Besides, paying $545.50/month versus nearly $2000/month seperately to creditors helped me get out of my bind.

I want to mention too, that before I contacted Care One, I had spoken to another debt relief company. They too operate the same way as Care One/Persels EXCEPT when looking at their rating on the Better Business Bureau, they had an "F" rating! The attorney was not heard of and all the signs pointed to this company being a bad idea. I found Care One by searching debt settlement companies on Google. They are backed by an "A" rating, a BBB Accredited Business! If you have ever reviewed their website they are proud to have been recommended on news shows on television and by word of mouth from happy successful consumer reviews.

I was reading these posts that people say they were not informed. They say they did not know how much was going where, nor did they know anything about how the program actually works. When you sign up with Care One/Persels, you are sent a 13 page contract to read and sign. Anyone who does not read a contract before signing should not get upset over the outcome and make accusations of not being properly informed. Everything is right in front of you BEFORE the first payment ever comes out of your bank account. The last page of the contract shows a list of your creditors, balances etc. Part of the last few pages is a payment plan. It shows you a breakdown of how much you send each month, how much goes towards legal fees and how much goes into escrow. This lists EVERY payment from month one to month sixty (if your plan is for that long). You know exactly where your money is going before ever sending a penny.

The creditors are sent cease and desist letters! Any creditor who says they have not received one is mistaken. There may be more than one address for these major companies especially, that if one letter is sent to an office in say, Texas, the office in New York may not know about it. I got into confrontations so many times with my creditors about this. They said they did not get anything. Well, someone got it, but it may not flash across the screen or be updated with every rep that works for that company across the country. Persels and their negotiators only need to speak to the department of that company that specializes in this type of situation. Plus, you were mailed extra copies of the letter for you fill out if needed. I used mine dealing locally with a specific bank. Another thing you were informed by Persels, whether verbally or by reading the contract (or both), if a creditor calls you and said they did not receive any letter, get the name of the person you spoke to, address and fax number. Forward this onto Persels, as they will send another copy of the letter for you to the specific address/fax obtained. Assuring it will get into the right hands. The "welcome" package you receive from Persels explains this.

You are instructed not to continue paying your creditors and to avoid making any payment arrangements or negotiations with them. That's what Persels is being paid to do. Those legal fees that everyone is complaining about, covers the document prep fees, the payroll to those handling the beginning stages and the negotiators who spend all day on the phone with creditors negotiating your debt lower. You should take into consideration that these creditors can be stubborn. They will be hesitant to settle the first time they speak to a negotiator. They want their money! It takes time for things to work out. Persels has built reputations with some of the larger companies, and have a better settlement rate. More specifically, Capital One may settle with Persels for 50% of your balance on that credit card, versus your local bank or smaller company only willing to settle for 70% of your balance with them.

I would like to touch on the one post that mentions settling with their credit card company on their own. Here are the pros and cons with doing that. Yeah, you may save yourself alot of money per month by not paying Persels legal fees if you withdraw from the program. However if you were to contact, lets say for example Capital One, you explain your situation to them. Lets say you have a $1000 balance on your credit card with them. Now lets say you both agree to settle the account for $600. First of all, you will need to send that in ONE lump sum, NO payment plans. So if you have it great, but if not, it's not an option. The other problem with doing this, is there is NO guarantee Capital One wont turn around and send the difference of your balance and payoff ($400) to an outside collection agency, down the road. You could end up receiving a call or letter as long as a year from now, saying you owe this money. Going through Persels and their attorneys that are licensed to practice in your state, you have the confidence knowing that will not happen. There are legal documents and such that Persels and the creditor discuss and agree upon to ensure the consumer (you) are protected from future debt collection.

I made my first payment to Persels on December 15,2008 and every month thereafter until April 2009, when I was fortunate to have a family member loan me $30,000 to send to Persels to complete my program. The original 60 month plan had me paying a total of $32,730. Now that Persels had all the money anticipated, they could start negotiations with my creditors. I have had no problem with my creditors being paid. I even have money left over! If you are asking why I did not take the $30k and pay off my creditors individually, first of all I could not. That was 50% of what I actually owed. I got away with having a little over $60k in debt, and paying back roughly $27k!!

I want to reiterate that the program does work. If you continue to send your money until the last payment is made, you too will have your debt possibly cut in half. Wouldn't you rather pay back less then what you owe?? If you continue to pay your creditors the minimum monthly payments, it will take you longer than 5 years to pay that back if your situation was anything like mine. With only one spouse in the household working, children and the cost of living paired with 18 credit/loan payments, we were at a dead end. There was no room for any extra to be sent to creditors to pay down sooner. Some people do choose that approach. You take the smallest or the higher interest rate card/loan and pay an extra $100 or so a month until you pay that off. You then take that $100 plus the min. monthly payment from that card/loan and apply it to the next one in line. That will work too, but for those of us which that was not an option, Persels saved us from filing bankruptcy!

In closing, if you are in debt and need help, Care One/Persels is there to help you get out of debt. The program does work. The staff are curteous and genuinely are concerned about your success on the program. If you are ever in a situation in which you are required to sign a contract, READ IT first! Know what you are siging before you sign it, it's common sense. I read the entire 13 page contract so I was fully aware of what I was about to get myself into. Oh, and about the post concerning the power of attorney... Persels NEEDS that to be able to negotiate on your behalf. For example, if you had your mom call your credit card company to discuss your account, they would not talk to her, unless she had a power of attorney to do so or if she was on the account. The creditors will NOT speak to Persels unless they see proof (signed by you) saying that Persels may discuss/negotiate the account. Privacy laws are strict and prohibit companies from releasing personal information without your SIGNED consent. I hope some or all of this helps those of you that are concerned about how your money is being spent with Persels. All it takes is a phone call to Persels to ask questions if you have any or to voice your concerns. They will address your questions and concerns and resolve them to the best of their ability. I've read too many comments that are putting blame on Persels when really they need to step back and look at the big picture. Ask yourself if you read, understood and if had any questions, were they answered PRIOR to sending any money. If the answer is NO to one or all of the above, then the consumer may not have taken the proper precautions and could be at fault, not Persels. Look at everytime you register on a website, you are instructed to read, understand and agree to the terms and conditions, as is with everything else it seems these days. So many things we do require us to be INFORMED prior to signing or agreeing to abide by the policy/terms. I'm thankful that I went through Persels. They got me out of debt and they can for you too!