Frequently Asked Questions

 

Q.  When does ADF begin settling my debt?

A.  Once you have fully retained our services, your creditors will be notified immediately and ADF will begin negotiations. However we can only settle a debt once the full funds are available.

 Q.  If I miss a monthly payment to ADF, will I be dropped from your program?

A.  No. Simply call our customer service department seven (7) business days prior to your debit date and our customer service department will make alternative arrangements with you. It is understandable that circumstances may arise and we will help you get back on track with your payment schedule.

 Q.  How do I find out the progress of my debt settlement?

A.  You can call our customer care department at 866-626-4718 Monday thru Thursday from 9:00am to 6:00pm, Friday from 9:00am to 5:00pm Eastern Standard Time to speak with a representative. You will also receive statements that will keep you informed of the status of your account upon request to the customer care department.

 Q.  Will I still pay my creditors directly while in the program?

A.  No. Upon enrollment, you will stop paying your creditors immediately. We will be negotiating on your behalf. Once a settlement is reached, you will be contacted for payment authorization.

 Q.  Are my creditors going to continue to call me?

A.  We immediately notify your creditors and demand they stop contacting you. It usually takes about 30-60 days. In the meantime, a creditor log must be kept for every phone call or letter that is received from a creditor.  It must then be reported to us.

 Q.  Will my creditor call me at work?

A.  They may attempt to contact you at work, however, once you verbally ask them to refrain from calling you at work, they are obligated to cease.

 Q.  Will my creditors continue to contact me by mail?

A.  Your creditors may also attempt to correspond with you by mail, this is allowed. Feel free to forward any correspondence and statements to our office as well.

Q. Will this program have a negative effect on my credit?

A.  The Debt Settlement Program may have a short – term negative effect on your credit profile. However, once negotiated and settled, your creditors should report the accounts as “settled” or “paid in full”. Once you have completed the program and you are debt-free, ADF has programs available to help you re-establish your credit profile.

 Q.  Why should I use ADF to settle my debts instead of handling it

myself?

A.  Our team has extensive experience in negotiating debt working with creditors. We have an impeccable relationship with creditors and collection agencies, who are usually unwavering in negotiating with the consumer directly. Our team has extensive knowledge in consumer debt and the Fair Credit Reporting Act.

 Q. Who do I call if I have a question about the program or problem with a creditor?

A.  You will talk directly with our customer service department at 866-626-4718 and any representative will have access to your file.

 Q.  Do I have to include all of my creditors into the program for settlement?

A.  No. We recommend that you keep open at least one credit card. Any accounts that are included in the settlement will have to be closed immediately. Creditors won’t settlement accounts that are still open. You should keep one credit card open for emergency use only. Please be sure that the card you keep out of the program does not have same issuing banks as any included in the program. (This will negatively affect our negotiating power).

 Q.  How long will it take for me to become debt free?

A.  It typically takes about 12-48 months, including all fees... However, it could be much sooner depending on your individual program.

 Q.  How much does this program cost?

A.  Our Debt Settlement Program costs are based on percentage of your total debt. Your monthly payment will de determined by what you can comfortably afford, and is based upon your level of debt, income, and living expenses.

 Q.  What if my creditors won’t settle?

A.  Creditors know that if they don’t settle for even a fraction on the debt, they will most likely get nothing. Creditors know that at a certain point, they have taken what they can get! Most of them will settle very quickly. In the rare event that a creditor won’t settle with our offer, they will return with a counter offer that will be favorable to you. Creditors know that if you declare bankruptcy, then they will get absolutely nothing, and that is what they are trying to avoid.

 Q.  Will ADF stop late fees and interest from accruing on my accounts?

A.  ADF cannot stop a creditor from adding interest or late fees to an account. However, your individual program will reflect those fees and/or interest, and is incorporated into the settlement. Because we negotiate the debt down to a fraction of what you owe, your saving are far greater than any interest or late fees that could accrue.

  How do the creditors actually get paid?
When a client decides that this is the best program for them, we set up a special "debt settlement account" at a federally insured bank, which is in the client's name. The sole purpose of this account is to house the money the client pays toward settling debt on a monthly basis. Once enough money is accumulated, we will use it to negotiate with the creditors one at a time. All payments to the creditors will be made from this account.

How do I pay for these settlements, how does it work?
We work out a monthly amount that each client can afford to pay. That amount is electronically debited from their personal bank account and deposited into their "settlement account" at a federally insured bank on the date (s) they work out with our Debt Consultants.

When the client has accumulated enough money to cover the settlement and our fee, we contact one of the creditors and make them an offer. Offers are submitted until both the client and the creditor agree on the amount. We then get the client's written or electronic approval on the total settlement (including fees). Upon receipt of the client approval, the bank will release the funds necessary to cover the total settlement (including fees). Once this settlement is paid, the client will begin the accumulation of funds in their settlement account and the process will repeat as money becomes available for the next settlement. We continue in this way until all of the accounts are settled.

It is important to note that we do not make any monthly payments to the creditors and we cannot pay for a settlement without our client's written or electronic approval.

What happens to my creditors while I am on the program?
Instead of your money going to your creditors each month, we will transfer the money from your personal account over to your settlement account per the schedule you create with us. You will continue to accumulate money in the settlement account until you have the money for us to negotiate a settlement.

The whole idea is that instead of paying the minimum payment or less each month and falling further and further behind, you will take the money you can afford and use it for lump sum settlements with you creditors.

Will the creditors start calling and harassing me?
Yes. As someone goes delinquent with their accounts, especially in the beginning, they will get creditor calls. However, we have developed steps that our clients can use that are effective in reducing and often eliminating phone calls from creditors

What happens to my credit?
If you are already behind on payments, or you might be shortly, your credit is already impaired - you have too much debt compared to your income. This is known as a high debt-to-income ratio. To be considered credit-worthy again, you must drastically reduce or eliminate your debt, thereby reducing your debt-to-income ratio.