Debt Relief FAQ’s
Does Century begin negotiating with my creditors as soon as I enroll in the program?
The first settlement can happen as soon as months 2-4 of a client’s program. This can vary greatly and depends on:
- Your monthly savings/draft amount,
- The number of creditors you have enrolled in the program, and
- The balance of each individual account.
Century usually contacts your creditors once we are prepared to begin negotiations, except when dealing with certain difficult creditors. The actual negotiation activity is typically very limited until you have saved up enough in your settlement account, for us to make reasonable offers to your creditors. When we make contact, we notify them that we have authorization to communicate and negotiate on your behalf and we request future collection calls be directed to us and not you.
Will my credit score decrease while on the program?
Often your credit score will decrease while you are enrolled in a debt settlement program. Our focus is to save you money by negotiating settlements on the balance owed.
What happens to the funds I am drafting monthly?
When you enrolled in your debt settlement program, a plan was created for you to meet your specific goals over an estimated time. Every month you deposit/draft a preset amount into your third party account. While your funds are building in this account, Century Negotiators are reviewing your file for the strategic times to contact each of your creditors to negotiate the best settlement opportunities for you. In order for us to optimize the timing of your settlements, you must be consistently depositing into your account every month.
At any time, you can log into the MyCentury portal to see your account balance and watch your funds accumulate. Once we have a settlement opportunity for you and you approve the settlement, your creditor is paid and the confirmed amount is deducted from your account.
When does Century collect their fee from my account?
Once we negotiate a debt, you authorize that settlement, and the first payment is sent to the creditor, the fee associated with that particular debt is due. At the time a fee is due, this amount will be deducted from your third party account. The Century negotiators will continue working to settle your remaining accounts and the subsequent fees will only be collected, per the process mentioned above.
Who controls the bank account where I am saving funds for creditors?
You control the account. The bank account is set up in your name, and the money in the account is your money. The reason why we recommend keeping it in a new account, separate from your existing bank accounts, is that in our experience this separation dramatically increases the probability that you will succeed in the program. Century’s fees are deducted from this account only after each debt is settled, according to our agreement. However, the accumulated savings in the account is owned by you.
How do I know if debt settlement is right for me?
In general, debt settlement can be helpful to individuals that are struggling to keep up with their minimum monthly payments or those individuals that are suffering a financial hardship due to change in employment, health issues, or other personal reasons.
Success in the program will require you to accumulate funds on a regular monthly basis. The Century team will work with you to customize your monthly deposits in a way that will work for you.
Will my creditors stop calling once I am enrolled in the program?
Being in debt can be a stressful life experience. On the other hand, getting out of debt is one of the most gratifying accomplishments you can achieve. This rewarding journey is often tainted with regular calls and potentially harassing communication from creditors, debt collectors, and collection attorneys.
This is why Century has contracted with a national consumer advocacy group, United Consumer Advocacy Network (UCAN), which protects the rights of people who may fall victim to harassment. As a Century client, you will receive the benefits of their Creditor Intervention Program free of charge. UCAN will work with you to handle these harassing calls.
It is our belief that you should be treated with respect as you work toward your goal of financial freedom.
Can I negotiate my own debts?
If you have the negotiation skills and know how the process works, you can contact your creditors yourself and see if they will negotiate your debt. But like many other complicated and stressful situations, most people choose to seek help and leave these tasks to experienced professionals, like doctors, plumbers and accountants, who earn their livelihoods as specialists helping people.
The Century team is experienced in helping more than 180,000 clients and settling more than $18 million of our client’s debt each month. Let our experience work for you.
Why are my creditors still calling now that I am enrolled in the Century program?
Most clients experience collection calls while on the program, even with laws in place to protect consumers from creditor harassment. Being in debt can be a stressful life experience and regular collection calls and potentially harassing communication from creditors, debt collectors, and collection attorneys only adds to this stress.
For this reason, Century has contracted with a national consumer advocacy group, United Consumer Advocacy Network (UCAN), which protects the rights of people who may fall victim to harassment. As a Century client, you will receive the benefits of their Creditor Intervention Program. Their program works with you to handle these harassing calls. It is our belief that you should be treated with respect as you work toward an admirable goal…Financial Freedom.
How do I differentiate Century calls from my creditor calls?
Century representatives will always call from a 724 area code and the caller ID displays Century. Please make sure that when you have received phone calls from us, you call us back as quickly as possible. Our calls may be to discuss a time sensitive settlement opportunity on one of your accounts.
Why are my creditors stating they have not heard from Century?
Our many years of experience in debt settlement have given us many strategies that we employ with creditors. Strategically, we do not contact each creditor immediately upon your start in the program. We have found that some creditors may accelerate their collection attempts when they learn a client is enrolled in a debt settlement program. Our knowledge of certain creditor tactics, guide our efforts to specifically wait to contact them for a prime point in your program.
Will interest and late fees continue to accrue on my enrolled debt?
While on your debt settlement program, your enrolled debt will become delinquent. Creditors typically will continue to add interest and late fees to accounts that are delinquent. Many creditors stop assessing interest and fees once they have charged-off the debt (typically 6 months following your last payment). However, others may not stop these assessments. Our goal is to negotiate substantial reductions to the balances on your accounts, including any interest and fees that may have been assessed.
Will I owe taxes on forgiven debt?
Yes. The IRS considers a forgiven debt as taxable income. At the end of the year, the IRS will expect taxes to be paid on the settlement. Although, they have a form (IRS Form 982) that allows certain hardship situations to be exempt from this tax. Please contact a tax advisor to discuss this issue further. To receive a 1099-c for your settled debt, the savings must be greater than $600.
How do I authorize my first and subsequent settlement offers?
When our Negotiators have a settlement offer waiting for your approval, we will make contact with you. For your convenience, we have convenient ways for you to approve your offers:
- Log in to the MyCenturyclient portal 24 hours a day and click on the red button, located at the top of your portal page, to review and approve your pending offers, OR
- Simply respond that you ACCEPT to one of the settlement authorization emails that our team has sent to you recently, OR
- Call our Customer Service team during business hours. They will take your call, review your offer and obtain your recorded authorization to accept the settlement.
Call Century Support Services today at (724) 861-3401 for your Free Evaluation!