4/16/2010 11:32 AM (PST)

David,

I would contact the company directly using the numbers on their BBB report and ask before providing any personal information over the phone to an unknown 3rd party.

In regards to fees and credit interest rates, please review the link below for the new credit card rules. This may serve as a guide in making your choice.

http://www.la.bbb.org/GIReport.aspx?DocumentID=177

Thank you.

4/20/2010 1:44 PM (PST)

Jeanne,

Can you tell us how did you find this company? I would get a refund if I were you and not send them any of your personal information. Immediately file a complaint with the BBB that they are a member of if they don't comply. This kind of service is available for free from several nonprofit credit counseling services and it seems that it may be difficult to tell exactly who/what you are dealing with here. If they are a lead generator for debt settlement or a direct debt settlement operator themselves, then their business category is misclassified, which is why they have a high rating. The debt settlement category is considered by BBBs to be inherently problematic, and when a company is classified as one of these it results in a much lower rating than when the debt management or debt consolidation categories are used. Even if they are "financial planners" or bill payers they haven't been in business that long and their provenance/association with other companies is not clear from my quick view of the situation.

I would call your card issuers (and write) and tell them that the payment percentage and rate is now a hardship on your household budget and request a lowering of your pymt/rate, or even a few months' deferment. You will have to provide some specifics (child-related, medical, car repair, spouse's situation, etc). Identify something (and your question reveals that there is pain somewhere in your finances). Perhaps this hardship is severe enough to make you think about bankruptcy. Believe me, they will be interested in hearing this and may well grant you a lowered fixed payment for a good length of time (ask for at least 12 months).

Also, call a reputable nonprofit credit counseling agency (they are free). They will identify and explain your debt repayment options and help you with ongoing budgeting. The National Foundation for Credit Counseling's direct agency referral number is 800-388-2227. This will connect you to an accredited agency in your area. These agencies maintain strong service and case management quality standards. There is another association, www.aiccca.org, that is a network of counseling agencies that also abide by strong quality standards. Their network number is 866-703-8787. These steps are tiring and take time but won't cost you any money. Getting on top of your financial situation will make you feel empowered and you will feel more secure with a reputable counseling agency.

Good luck, let us know how it works out for you.