Have you asked your debt settlement company whether they have contacted the creditor or not? If you are dealing with your creditor alongside paying the settlement company, then I must tell you it is useless. The debt settlement company is supposed to handle your account henceforth. So, if you're having to do their job then it isn't worth the pain. Anyway, yes, this can well be a scare tactic but creditors do sue debtors and acquire judgments against them. So, you may try and negotiate with your creditor and get to a settlement amount. If they do agree (which might take some time as it is very clear) do not forget to ask for a 'pay-for-delete'. Let me know how things progress.
Hi Andyth
Have you asked your debt settlement company whether they have contacted the creditor or not? If you are dealing with your creditor alongside paying the settlement company, then I must tell you it is useless. The debt settlement company is supposed to handle your account henceforth. So, if you're having to do their job then it isn't worth the pain. Anyway, yes, this can well be a scare tactic but creditors do sue debtors and acquire judgments against them. So, you may try and negotiate with your creditor and get to a settlement amount. If they do agree (which might take some time as it is very clear) do not forget to ask for a 'pay-for-delete'. Let me know how things progress.