ShareThisDear Debt Adviser,I have been badly used by a credit-card company. A credit-card debt consolidator told me to stop paying for now and to save money in an account that can be used toward paying off the credit card later. Eventually, I'll be able to settle down the road for 40 cents to 60 cents on the dollar.I'm tempted. I'm retired and don't need credit. I would like to get back at the bank that has treated me so badly.However, I'm worried about the consequences to my wife's credit. Her name is not on the card. If I take this action, will it have an impact on my wife's credit?-- RobertDear Robert,I'm not sure what you mean by "badly used." But if the debt is valid, I hope you will reconsider and make good on your obligation.I am also concerned that you might write to me later and tell me that you have been badly used by a debt-settlement company.First, let's take on the card issuer. Every lender has its regulators and state watchdogs. I suggest you take your complaint to them. For the creditor, the pain from a regulator's inquiry is much stronger than the insignificant pain of a debt settlement.In addition, many ethical lawyers are willing to listen to your complaint and tell you if you have grounds for legal action. Again, this would create much pain for the card issuer.Don't forget your local TV consumer reporters. They love "abuse of the little guy" stories, and that can spell lots of lost business and maybe a refund or apology for you.Lastly, a letter to the bank president could have profound effects down in the trenches.I'd be remiss if I didn't suggest just taking your business elsewhere. Rather than stop paying, research other credit-card offers and transfer the balance to another credit card with better terms.Denying your current card issuer the right to collect all the interest on your balance should help satisfy your desire to "get back" at the bank. The bonus is that you won't be hurt in the process.If you end up using a debt-settlement company, be careful. This industry is lightly regulated and known for high upfront fees and inconsistent results. It also has been the subject of numerous consumer complaints.Be sure to check out the company with your state consumer-protection people before you sign up or send money. Be especially wary of fees that eat up your first payments, high monthly maintenance fees and backend fees if anything is settled.Also, be careful about giving power of attorney to a debt-settlement company, and don't forget that any settled amounts are likely to become taxable income to you.As long as your wife is in no way connected to the account, and you don't live in a community-property state, her personal credit will not be affected by any adverse reporting of your account.(Steve Bucci is president of Money Management International Financial Education Foundation. Visit www.moneymanagement.org for additional debt advice. If you have a question for Steve, e-mail debtadviser(at)bankrate.com. The Debt Adviser is a weekly feature of bankrate.com. For more stories, visit scrippsnews.com.)
Strike back against unfair card issuer
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