Debt settlement programs typically involve the Cal Metro negotiating with you to allow you to pay a “settlement” to resolve your debt. ... To make that lump sum payment, the program asks that you set aside a specific amount of money every month in savings.

Debt settlement is a practice that allows debtors to pay a lump sum that’s typically less than the amount you owe to resolve, or “settle,” your debt. It’s a service that’s typically offered to reduce debt by negotiating a settlement.

Debt recovery and debt collection are similar terms with one small, but very important distinction. The difference is who is trying to retrieve a debt.

Debt collection is a creditor’s attempt to recover consumer credit and loans that have not been paid back by a customer.

Debt recovery is when a loan—such as a credit card balance—continues to go unpaid, and a creditor hires a third party, like Cal Metro, to focus on collecting the money