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Case Study 1
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Client Name : JT
Introduction:
JT was in debt & was soon beginning to feel that there was no light at the end of the tunnel. With increasing interest rates & never ending payments this was becoming a reality. His once fulfilled life seemed like a thing of the past. This is when JT came to Oak View Law Group. We are a law firm registered with the California Bar Association & accredited by Better Business Bureau.
Client Problems:
Here is a very brief summarization of the main problem, like the evil root that kills a bright & sprightly tree. On speaking with JT, we were given an insight to the events which led to his life being filled with debt. Some of these circumstances were unavoidable, yet some could have been avoided. But all said & done, JT was in debt.
Total debt: $10880.21 spread over two creditors. Both these accounts were in collection.
Ovlg Solution
Plan of action:
Once JT contacted OVLG, our financial analyst BG, who is IAPDA certified, analyzed the total debt & what would be a suitable plan for JT. After studying the customer’s total earning & expenditure, he deduced the disposable income. JT was required to make & monthly payment of $150, toward the trust fund, from which we would later use the money to settle his debts. He agreed to this monthly payment of $150. With a new filled confidence JT enrolled with OVLG on 10/29/2008.
Implementation:
Once JT was enrolled with OVLG, his case file was transferred to Paul, who would work with JT as his Client Relationship Manager.
Creditor I
The first account to be worked was Citibank. Outstanding balance $ 5,698.33.Paul sent over the POA to Citibank & then consequently followed up on this. He had to call & re-fax the POA to Citibank many times as they had not received the document. Finally on Nov 28 2008, they confirmed receiving it & updated OVLG’s # instead of the customer’s # for further contact.
Jan 12 09, Paul spoke with a representative of Citibank & she offered a settlement of 50% (2850) in 3 installments. On Feb 4 09, Paul further negotiated & got an offer of $1710 in 3 installments. On 02/13/2009, the client made the first payment. The second & final installment was made in May 2009. The account was settled at 30%.
Creditor II
While working with the second creditor Discover, the file was transferred to Oscar Sanchez, another Client Relationship Manager. By 29th November, the creditor confirmed receiving the POA & changed the client address & phone # to our’s. The account had been transferred to the law firm Zwicker and Associates. The total outstanding on this account was $5181.88. The creditor agreed to an 80% settlement amount. Oscar advised the client to wait for a while so as to try & get the settlement amount to less. However the client was ready to accept this offer as the law group has initiated a summons, which would be legal within 30days. So as to avoid this situation, the client was not ready to wait. Therefore the account was settled at 80% in 2 installments. The first payment was made in November, 2008 & the final payment in June, 2009.
Conclusion/Results
After working with JT on his initial call to OVLG, our Financial Coach was able to understand & thereby chalk out a plan best suited for the client. After receiving a substantial amount on which we could move forward, we began our negotiation with his first creditor Citibank & then with the second creditor Discover. All this was possible through the successful negotiating of our Client Relationship Manager. JT was also a promising client & was very serious about becoming debt free & made sure that the payments were on time. He was available at all times for discussion. Through all this, from the time of inception to the end, JT with the help of OVLG was able to walk debt free in 7months.
