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Can my daughter get out of a contract with a debt settlement company?

Asked over 2 years ago - Naperville, IL

They have told her NOT to make payments on her credit cards for the last two months, or in the future. The company's fee is paid first so she will be incuring late payment fees until their fee is paid.

Is there normally an "opt out" clause?

Thank you,

Kathy

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Attorney answers (1)

Karen L Ware

Reputation Level 9

Answered over 2 years ago. Bankruptcy Attorney in Bethesda, MD.

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Many debt settlement / debt consolidation companies offer clients the option of canceling.

You will need to read the contract your daughter signed to determine whether her particular contract has a cancellation clause.

Even if there is no such clause in the contract, your state law may offer some protections if she did not understand the contract when she signed it.

You may have other protections under state law as well.

It would be worth your time to speak to an attorney in your area. Many attorneys offer low-cost consultations.

Best of luck to you.

Disclaimer: I am not licensed in your jurisdiction. The above is general information only and not legal advice.

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