California debt relief is a real thing. It's available through a number of different California Debt Relief programs, including the state's Debt Relief Program and Mortgage Assistance Program. You can also get help from private debt relief companies.
California Debt Settlement Services Act
This act protects those seeking debt relief through settlement companies. Companies must be transparent about their services, fees, and potential consequences, such as impacts on credit score and taxes.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
Keep in mind that the government doesn't offer grants to help Americans pay off consumer debt from things like credit cards. It does, however, offer financial support for Americans struggling with a range of tough financial situations.
Lenders apply debt forgiveness in several ways, including through directly negotiated settlements or government programs. You can also approach industry professionals such as debt counselors to assist with repayment plans. However, it's important to keep in mind that debt forgiveness is relatively rare.
California's Fair Debt Collection Practices Act has long been a critical framework for protecting consumers from abusive or unfair debt collection practices. Recently, however, Governor Gavin Newsom signed into law SB 1286 on September 24, 2024, expanding these protections to certain commercial debts.
Is Pacific Debt Relief Legit? Pacific Debt Relief is a legitimate company based out of San Diego. The debt relief firm has been in business since 2002, is accredited by the International Association of Professional Debt Arbitrators, and has been accredited by the Better Business Bureau since 2010.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
California's Fair Debt Settlement Practices Act prohibits debt settlement providers and payment processors from engaging in unfair, abusive, or deceptive acts or practices when providing debt settlement services or payment processing activities. (Cal. Civ. Code § 1788.302).
Starting July 1, 2025, companies must get clear consent before charging customers after a free trial ends, send annual reminders about recurring charges, and make cancellation just as simple as signing up.
If you're one of the millions of Americans struggling to repay high-interest debt, a debt relief plan may be an option to help you get your finances on track. But it's not a quick fix. It's a long-term solution designed to help you get out of debt over a period of time — typically several years.
If you do it right, debt consolidation might slightly decrease your score temporarily. The drop will come from a hard inquiry that appears on your credit reports every time you apply for credit. But, according to Experian, the decrease is normally less than 5 points and your score should rebound within a few months.
Hardship programs are nearly identical to the debt management programs offered by nonprofit credit card agencies like InCharge Debt Solutions. Both programs make it easier to afford the monthly payments by lowering interest rates and eliminating fees.
You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out an affordable repayment schedule. Qualifying Californians can get out of debt in 36-60 payments, on average. Another option for California residents is debt settlement.
Pacific Debt Relief does not charge upfront fees, and service fees range from 15% to 25% based on the amount of your debt and your state. Fees are rolled into your monthly payment and kick in only when you start to see results. You will need to have at least $10,000 in unsecured debts to work with Pacific Debt Relief.
Key Takeaways. There aren't any free government debt relief programs for credit card or personal loan debt other than bankruptcy.
Debt collectors may not be able to sue you to collect on old (time-barred) debts, but they may still try to collect on those debts. In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
If you continue not to pay, you'll hurt your credit score and you risk losing your property or having your wages or bank account garnished.
The short answer is yes, credit card debt forgiveness can negatively affect your credit score. However, the impact depends on various factors, including your current credit score and the specifics of your debt settlement agreement.
While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify. The local housing authority pays the landlord directly.
Once you notify the debt collector in writing that you dispute the debt, as long as it is within 30 days of receiving a validation notice, the debt collector must stop trying to collect the debt until they've provided you with verification in response to your dispute.