Fedsco - Frequently Asked Questions

Secured debt is the type of loan provided based on the value of the collateral. The collateral serves as a guarantee and be repossessed if the debtor is unable to repay the debt. (Example: House, Automobile)

Unsecured debt is the type of debt normally provided based on the debtor's credit. This debt is not backed by a collateral. (Example: credit cards, utility bills, cell phones bills... etc)

What kind of impact will the debt settlement service provide to my credit score?

The answer is: negative but positive.

Unfortunately, your credit score will be negatively affected with the major credit reporting agencies. Negotiating and settling accounts for you will be an overall positive impact on your credit, compared to an unresolved debt or bankruptcy.

Fortunately, we offer an additional credit information option, which helps repair your credit and we commit to assist you with the restoration of your credit.

How long will the debt settlement process take?

There are many factors that are involved to answer this question.

One of the factors is to find out what is your financial goal and ability of your goal. A second factor is the time that you would like to see yourself to be debt free from the unsecured debts. Another factor will be the creditor. Lastly and the most important factor is your commitment to the program. We customize our program based on the clients needs and availability.

How do creditors get paid?

When the client agrees to the best program for them, we help provide a special “debt settlement bank account” insured by FDIC.

When the client has accumulated sufficient funds to satisfy one of the creditors, we contact the creditors to make an offer. An offer to the creditor is then submitted once an agreement between the creditor and the client. Once a client’s consent to satisfy the debt is received, an order to the FDIC insured bank is sent for immediate payment to the settled creditor. The cycle will be repeated for the remaining unsecured debt.

Are your debt settlement products guaranteed?

Excellent question! Yes. We provide a written promise to settle at the agreed amount or your money back.

What are some of the tax consequences to settle a debt?

If a creditor has forgiven a portion of a debt owed, and the amount is over $600, the creditor may send you a 1099c, which will be reported as income to you. Please contact with your tax attorney or consultant for further tax questions.

Can my wages be garnished?

Although the garnishment actions are not common, it may happen. To understand the process of a garnishment here is the process that the creditor will have to go through in order to garnish salary from an individual:

- Creditor must file a lawsuit
- They must be granted a judgment
- And then a garnishment is granted

Going through these steps can be costly to the creditor as it involves legal paperwork. Please be informed that your paycheck can not be garnished without proper notification or court approval. If this happens, we can negotiate with a creditor for a higher amount

Can creditors still sue while in the process?

Creditors can still file a lawsuit while in the process. In fact, creditors can sue at anytime, if this happens, those account would be the priority to settle

I have seen other Debt Settlement Companies. No other Debt settlement company offers what Fedsco offers. I also know that from the very first payment they are negotiating my account to try to reach a Settlement. I am very satisfied with this Company. They settle all accounts on a average of 38 cents on the dollar!!! Alfred S.

I was very surprised about my payment plan; I thought at the beginning that this was too good to be true that there had to be a catch. At my second month in the program I was surprised to see that FEDSCO had done the first settlement of one of my personal loans and got it paid of at five months in the program. I strongly recommend the company so far so good no complaints what so ever. Beverly G.

I was enrolled with another debt settlement company and they were not upfront with me from the beginning. After 9 months I noticed that the old debt settlement company were just taking my money and not even contacting my creditors. A friend, in their program, recommended Fedsco. At first I was skeptical on going through with a settlement company, but later realized that they do what they say they are going to do. I am very happy with the results that I am getting and I strongly recommend this company to anyone. H.C.

I was way in over my head and I didnt know what I was going to do. Then I joined up with Fedsco and they worked everything out. I am very satisified with them any time I have a problem with one of the accounts they are handling I just call them and they are right on the problem. This is a great Company and I would recommened them to anyone, and they treat me great. Gail.A

I wanted to share my experience with everyone and mention that Fedsco has been very upfront with their services. Thus far, everything that they have said they were going to do, they are doing. After 8 months into my program, I originally started with 14 creditors and I am now down to 9. My recommendation is to be patience as they will guide you with every step of the way.

Frequently Asked Questions

What type of debts qualify for debt settlement?

Differences between secured vs unsecured debt?