Some Issuers Growing Comfortable with Settlement Companies

Although many consumers and experts tell you to stay away from them, it seems that debt settlement companies are being utilized now more then ever as an increasing amount of people look for an alternative to bankruptcy. Because of this reason and the fact that there is a push to regulate the market, many within the credit card industry are finding themselves growing more inclined to work with settlement companies.

Just like public opinion, issuers are mixed on the idea of working with settlement companies. While some have embraced the companies, others still perceive them with skepticism and have stated publicly that they will not work with them. According to a recent Nilson Report the stance of some of the larger card issuers are as follows:

Some issuers that state they are willing to work with them include: 

• USAA
• HSBC
• Wells Fargo
• U.S. Bank

Some issuers that state they aren’t willing to work with them include:

• Discover
• American Express
• Capital One
• Bank of America
• Citi Bank
• Barclays
• Chase

So what benefits do credit card issuers receive when it comes to working with settlement companies? What should come at no surprise, the answer to that question is solely based on money. Issuers that work with settlement companies agree mostly in part because they know that they will get at least a third of the amount owed to them if not more, which in most cases is paid with one or two payments. 
 
 

How do you feel about credit card issuers growing more inclined to working with debt settlement companies? Is a settlement company something you would use?