FAQ’s
What is the cost of your program?
Who is eligible to participate in your program?
Which of my debts can I include in your program?
Can I choose to leave some of my unsecured debt out of the program?
What do I do when creditors call me about late payments?
Should I tell my creditors that I am saving money for negotiations?
What part does the customer play in the ongoing process?
What if an aggressive creditor makes demands or threats?
Can I get legal advice from any representative of FCS Debt?
How do I contact FCS Debt if I have questions about my account?
Where is my money held as it accumulates prior to settlement?
Can I put more than my scheduled payment into my account?
When does the negotiation process start?
Will I be notified of pending settlements?
What about ongoing interest and late penalty charges?
Do you guarantee specific results for your customers?
Why couldn’t I just negotiate with my creditors without the services of FCS Debt?
What effect will your program have on my credit?
Do I get to keep my credit cards?
What if I need to keep a credit card for business purposes?
If I have irregular income, can you help me?
If I had a co-applicant on a card, can I go on the program without his or her permission?
Where can FCS Debt do business?
What is the cost of your program?
With THE SIMPLE PLAN – there are absolutely no upfront fees. We don’t get paid until you save money. Our fee at the end is simply a percentage of the amount we save you!
Who is eligible to participate in your program?
The vast majority of applicants are accepted into the program. Your consultant will review your financial picture and make a preliminary determination as to your eligibility. Poor credit history will not keep you off our program. On the other hand, many people with perfect credit history are often under tremendous financial strain and could be eligible. Final underwriting decisions are made by the corporate office within 2 working days of receiving your returned enrollment packet, and at that stage no one will be disqualified without first being contacted by the underwriter for more information on their financial situation.
Which of my debts can I include in your program?
We are able to deal with most unsecured debt. We do not handle secured debt, such as mortgages and car loans, purchase contracts, or government-backed student loans. Business debt will be considered on a case-by-case basis. FCS Debt does not negotiate IRS and tax debts.
Can I choose to leave some of my unsecured debt out of the program?
Creditors have access to your entire financial picture through the credit bureaus. If some of your accounts are being paid, they will want to be paid also. By continuing to pay select creditors, you will make the negotiation process more difficult, and satisfactory settlements will be harder to attain.
What do I do when creditors call me about late payments?
Your creditors will call you regarding collection of payment on these accounts. We will give you helpful options on how you can deal with these calls. We ask you to not discuss payment arrangements with your creditors; simply refer them to our creditor call line (provided in your enrollment packet), and we will gladly discuss a settlement schedule with them. Feel free to contact our customer service department if you need additional help.
Should I tell my creditors that I am putting money away for negotiation?
Never, under any circumstances, should you discuss with your creditors the details of your program. You should merely refer them to our creditor call line or follow the script provided in your enrollment packet. The less you talk to your creditors, the easier your program will work for you. The more you talk to creditors, the harder it is for our negotiators to arrange satisfactory settlements.
What part does the customer play in the ongoing process?
Your only part is to make your monthly payments consistently and to communicate with us if you receive letters or harassment from your creditors. You should never agree to send money to your creditors and should avoid talking to them.
What if an aggressive creditor makes demands or threats?
For helpful information, contact our customer service department or refer to your enrollment packet for review of our creditor call guidelines.
Can I get legal advice from any representative of FCS Debt?
No. FCS Debt is not a law firm, and if you think you need advice on a legal matter, we encourage you to speak with an attorney. Our representatives are qualified only to list the benefits of our program and to explain how it works.
How do I contact you if I have questions about my account?
You can e-mail or phone our customer service department to have specific questions answered. Their contact information will be in the enrollment packet you receive after speaking to your consultant.
Where is my money held as it accumulates prior to settlement?
You will receive forms in your enrollment packet to open a Special Purpose Account in your name at a specified financial institution. That account will be opened and monthly payments will accrue in your new account.
Can I put more than my scheduled payment into my account?
Yes. The faster the balance in your account accumulates, the sooner we can make offers to your creditors and the sooner you will become debt-free. Larger monthly payments or lump sum payments will help accomplish that goal.
When does the negotiation process start?
The order in which accounts are negotiated depends on your mixture of creditors. When there is a sufficient amount available, FCS Debt professional negotiators will begin making offers on certain accounts based on our knowledge of which ones will need attention in order to avoid excess pressure from the banks. We may have to allow smaller accounts to wait, even though there is plenty of money to negotiate them, because we need to accumulate enough funds to settle a larger account with a more aggressive creditor. The negotiation department will determine the best pace at which to submit settlement offers. Remember the longer an account ages without payments, the better chance there is of a lower percentage settlement. Time is on your side, so be patient. Your consultant estimated a time frame for your program, and it could take more or less than that for you to finish. In most cases, actual settlements begin 6-12 months after enrollment. However, it’s not unusual for most of a customer’s accounts to get settled in the last 8 months of a 30-month program, with substantial savings for the entire portfolio. You win by waiting.
Will I be notified of pending settlements?
Because of the way the creditors work, settlements often have to be paid on the same day that the arrangements are made. That means some of the settlements will be higher than the original balance, and some may be lower.
What about ongoing interest and late penalty charges?
The creditors will continue to add any fees that they can to your account. We have no power to stop this process, which will happen whether or not you are on our program. Our fees are based on the amount we save you relative to the original balance.
Do you guarantee specific results for your customers?
We guarantee that the amount of your monthly payment will not go up after you have been accepted into the program, unless you add more debt to the program after the fact. We also guarantee that the total you pay will not exceed the total of your original debt owed, including program fees. The time frame in which you will complete the program is an estimate only, based on previous experience. However, since all accounts are negotiated individually after the fact, we never know in advance exactly how long it will take. If you complete the program in less time than originally estimated, which often happens, you are finished early and the payments stop. After the final settlement is made, any amount left in your Special Purpose Savings Account belongs to you.
Why couldn’t I just negotiate with my creditors without the services of FCS Debt?
In most cases, creditors will not settle for less than the balance owed when dealing with the borrower. When they do, the settlement will probably not be as low as it would be with our negotiators. They know that most people will give in to their pressure and threats. As a third party, we can step in on your behalf and achieve better results. In addition, our program has two other advantages: 1. We help absorb the harassment that often comes with being late and 2. We put you on an affordable plan that gives you the discipline necessary to achieve your goals.
What effect will your program have on my credit?
Being on our program will have a negative effect on your credit score. Delinquent payments can show on your credit report for up to seven years. Most people do not realize that making payments on time is only one factor in their creditworthiness, and that excessive debt is also a factor.
Part of our negotiation process is that the creditor must agree in writing that your account is paid or settled, with no further obligation on your part. You can use this to update your credit reports if the creditor fails to do so. Keep in mind that our objective is not just to get you out of debt, but also to keep you out. We will give you the financial capacity to pay as you go, and you will find life is much better the “debt-free” way.
Do I get to keep my credit cards?
No. If you have a zero balance card, you may keep it to make reservations for hotels or car rentals. However, you should make the actual payment in cash or with a debit card, not with the credit card. Our program should enable you to save money so you will be able to pay as you go.
What if I need to keep a credit card for business purposes?
A debit card or stored value card can substitute for a credit card. We also suggest opening a secured credit card account and putting money that you save each month into the account, so you can use your secured card for your business expenses.
If I have irregular income, can you help me?
Yes we can. We would average your income for the past year in determining your ability to pay.
If I had a co-applicant on a card, can I go on the program without his or her permission?
No. Since it will affect his or her credit, you must get his or her permission in writing. If that is not possible, you can go on the program without including that joint account.
What if one or more of my creditors currently takes their payment out of my checking or savings account by automatic draft?
We suggest closing your current checking or savings account and opening a new one. The reason for this is if you put a stop payment on the draft, the creditor can just run the draft for a different amount. For instance, if you have agreed to have $20.00 taken out of your account each month, and you put a stop payment on the $20 draft, your creditor may just run the draft again for $19.99 or $21.00. It will then go through, since your stop payment was for $20.
If I have a secured loan and an unsecured loan with the same bank or credit union, is it okay to put the unsecured loan on the program?
You need to examine the paperwork on both loans to see whether the security is cross collateralized. A car loan with a credit union, for instance, is often tied to an unsecured loan at the same credit union, and if the unsecured loan is not paid, the car automatically becomes security for the unsecured loan.
FCS Debt can conduct business in the following states: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, District of Columbia, Florida, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Texas, and Virginia.
If you have any additional questions, please don’t hesitate to contact us.
