being sued after enrolling in Credit Solutions of America

[des4986]

What is the name of your state?What is the name of your state? Ohio

We enrolled with Credit Solutions of America in January of 2005 for our one and only unsecured creditor, Beneficial. An attorney has recently contacted us demanding full payment and Beneficial filed suit against us for the balance of $21,464 plus interest and fees. We have responded to the summons but wondered that if we had enrolled with a debt management company we would have avoided being sued? We have given CSA a limited power of attorney for this account. What legal action can be taken against us in court? We do not have enough equity in our home or cars to borrow against (we already explored that option) and wonder now if filing bankruptcy would have been the better option? We also are wondering about wage garnishment, what is meant by disposable income? Is it after mortgage & other bills or strictly take home pay?

Sorry for asking so make questions, but we have a lot of them!!! Thanks...

[Ladynred]

CCCS isn't going to be able to help at this point, they've been sued already. CCCS is about equal to a Ch 13 anyway, but you have NO protection from creditors.

99.9% of these places are SCAMS. They will completely destroy your credit (if its not destroyed already) and just that you 'joined' is a negative in and of itself on your credit reports. They can do NOTHING for you in court !

CCCS programs are controlled and funded by THE CREDIT CARD COMPANIES.. so who do you think they're looking out for ?? Its not you !

What legal action can be taken in court ?? They will get a judgment against you. That will allow them to garnish your wages, sieze your bank account(s), and seize non-exempt property, and place a lien on your home. Judgments in OH are valid virtually indefinitely though they must be renewed to keep extending the time.

Bankruptcy probably WOULD have been your better option..still IS an option, especially so if you can't afford to pay it or could lose your home.

Disposable income is your take-home pay less all your normal living expenses and payments on secured debts (mortgage and car loans). It does NOT include payments to any othet unsecured creditors.

[scoobyjaxs]

I or I should say my husband and I also enrolled in credit solutions of america in Jan 2005. We were with Better Business Budget and I can say not a good idea. We went with credit solutions because they said they could help us and they sent us everything we need and yes the have taken money out of our accout since Jan 2005. When we started with them we were served from Arrow finance last year. We have heard nothing from Arrow finance and yes we answered the court order and took it up to the Laramie County Court House. BBF could not help us. We called credit solutions and told them about it and the rest of our bills. They said they could help us. We have payed them quite abit. Because they are our bills and we want to pay our debt so we tried this company. Well I went to work Friday night June 24, 2005 and guess what was waiting for me a Writ of garnishment for the company to garnish my check. They gave it to my work I am so embarrassed because ot the way it was done we had no warning at all. And where I work nothing is private. The are going to take 25% of my check evey 2 weeks which is going to destroy us. I have emailed CSA sat morning when I got home and am waiting on a reply from them will check my email Monday. We are very concerned what is going on. We live in wyoming.

If you here of anything please let me know.
Thanks scoobyjaxs

[ryown]

I, too, made the mistake of contacting Credit Solutions to help resolve my debt issue. Reading the other posts in this thread, helps to explain why they were never on my side and I now feel as though I have been had. I paid Credit Solutions over $400 a month for the 1st few months, then $200 a month for over a year. THEY DID ABSOLUTELY NOTHING FOR ME THAT WOULD NOT HAVE TRANSPIRED ON IT'S OWN. After realizing this, while well into the plan, I began to ask questions about their business practices, etc. and continually received their "canned" letters where they just filled my name in the appropriate blanks, never addressing my concerns. Within the past 3 months, I have received 2 judgments against me from creditors I had enrolled in the Credit Solutions plan and have had to deal with an EXTREMELY rude woman at a law firm handling one of my judgments, calling me almost daily, threatening to have my wages garnished, etc., all the while paying Credit Solutions to "help" me. What a joke! The "payment offers" presented to me through Credit Solutions all hit at once and I was forced to either make monthly payments to the creditors for about $250-$300per month to each creditor, or have my garnishes waged and be taken to court. When I asked Credit Solutions how it could have even gotten to this point since they were supposed to be in contact with my creditors this whole time (over a year), they had no plausible explanation to give me. I was forced to file bankruptcy and just pray that all goes well. We all make mistakes and I have learned from mine. I would urge ANYONE to reconsider before contacting Credit Solutions - they are unregulated scam artists who care nothing about you or helping solve your financial problems!

[Zigner]

Congratulations on posting to a 4 year old thread.

[Country Living]

Zigner, you've been in a fine mood the past few days! Normally you would have e-slapped the necroposter silly and taken him to task for not paying attention.

Have we lost the "old" Zigner? Has someone hijacked your logon? Are you a pod person (this may be lost on anyone under the age of 50).

[Zigner]

Originally Posted by Country Living

Zigner, you've been in a fine mood the past few days! Normally you would have e-slapped the necroposter silly and taken him to task for not paying attention.

Have we lost the "old" Zigner? Has someone hijacked your logon? Are you a pod person (this may be lost on anyone under the age of 50).

I gotta pick my battles