Risk Management Co - Need Help

What is the name of your state? Missouri

Over the years I have fallen behind in credit card payments from time to time. Sometimes I have been able to catch them up and other times I have not. In August of this past year a man called me on the phone saying that he had a program that would get me out of debt in just 43 months or so and settle the accounts for 40 to 70% off the total that was due. They say they are a Risk Management Company. He had me give him the information on 4 credit card debts I had and the total amount I owed on them. I did this and then he told me that if I could pay just $299 up front and then payments of just $221 per month via automatic bank withdrawl he could take care of all these accounts and I would be debt free at the end of 43 months and have a much improved credit rating. I filed the papers with this company so that I could be enrolled in their program. They told me not to make any more payments to any of the creditors I had listed with them. They told me that if they called me that I was to go to the internet site and file a harrassment complaint and they would take care of it. Well of course the phone calls and the letters started coming and I would go on line and file the harrasment complaint or if the creditor mailed me a letter I would fax it to them. The Risk Management company then told me to take any statements that I was getting from the credit card companies and fill out the change of address section so that my statements were to be sent to the Risk Management Company's address. (As if I had moved in there).
On December 11th the local sheriff came to where I work and handed me a summons to appear in court Jan. 10th as it was a request for a judgement from Sears for the credit card I have with them and this credit card was listed with the Risk Management Company. I called the Risk Management Company about the summons and they told me that they would Email me instructions on what to do. They Emailed me instructions on how to file a Response To The Complaint and how to file it with the county court and to also send a notarized copy to the attorney who was representing Sears. I did as they had instructed me to do. My response to the complaint stated that I agreed I owed Sears money but that I disputed the amount, needed the debt validated and I objected to attorney and court fees.

I went to court and the filing attorney was not there but they had a local attorney there to represent them and they made an offer to me to make payments of $220 a month until the whole amount was paid off. ($5,198.00) -the judge said that I had already filed a response to the complaint that I disputed that amount so the judge said that we would come back in 30 days and either settle it or schedule it for trial.

Now I have another OC listed with this company calling my 81 yr. old mother.

Is this type of company legal? I don't know where to start with this. Any help from any of you would be much appreciated.

[Ladynred]

From your post in another board, I suggest you do as was suggested there, this 'risk managment' company could be a HUGE scam - most of them are anyway.

Second, there is nothing that says any creditor MUST participate in any 'mananagment' or debt negotiation/consolidation plan.

If you were paying these people to pay the bill you've been sued for, then you need to find out ASAP where your money went, as well as any and all other details about what this company was supposed to be doing.

Did you get any kind of contract for their 'service' .. hopefully you did. If they breached it, you might have some legal recourse.

If this scum CA knows what your current address is, then they are violating the FDCPA in calling your mother and harrassing her, as well as the violations cited by discussing your debt with any 3rd party.