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user590988

Guest
I applied with ameridebt to get a reduction on my credit card bill's. I was told to send $300.00 to get it started and the total amount I would need to send each month was $680.00. I specifically asked if I send $300.00 now and then send $380.oo bythe 30th would it be intime to startthe paymebnt. I also asked how do you get paid if you said you are a non-profit organization they said from people's contribution. I sent the $300 because I didnot have the $680.00 at that time so he said okay the next payment should be $380 and thereafter you send $680. I said okay.The next thing I know I received a Letter from the secreatary that I should send $380 by november 30th fine. Then I call the (tcn)the credit network inc and they said I had to send $680 by november 30 not $380. I called the representative at the ameridebt company and he said that the $300.00 is the fee for the services.The consumer credit agency are supposed to be free. Now I keep getting calls from the bill collector. The tcn said I would have to start over I send $680 today and I would like to Know how can I get my $300.00 I sent to the ameridebt agency when none of that money is going toward's my credit cardbills and they specifically said that they were a non-profit organization.
 


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JenniferH

Guest
Did you get any of this in writing or is this all per phone conversations, etc. If you ever make any arrangements alway back it up by memorializing the conversation by letter, send certified, RRR mail and that way you are covered for arrangments.

Wait for further replies to your post.
 

JETX

Senior Member
There is a BIG difference in a non-profit and a 'not for profit'. A non-profit means that they still recover fees, but they are generally used to support the expenses of the office (salaries, rent, expense-accounts, travel, etc.), but they don't 'plan' on making a profit. A 'not for profit' is exactly that, they do not make a profit and are usually staffed with volunteers and their other expenses are usually courtesy of contributors.

However, you need to realize that there is no way that ANY business or operation can exist without some income from some source. Where did you think that the credit service was getting their money? Credit service companies operate on one or all of several methods:
1) They negotiate a lower payment plan with your creditors, total them together and add a little for themselves. Then give you a 'total payment' amount.
2) Another way they make money is to negotiate a payment plan with the creditors. In turn the creditors pay them a percentage of the money recovered, just like a 'collection agency'.
3) Finally, some of them also charge an upfront fee (application, loan consolidation, etc.) and pocket those moneys.

As JenniferH suggested, you need to CLOSELY and CAREFULLY read the agreement that you signed. Then, if you feel that you were mislead or not treated per the agreement, you need to write them with your concerns (send Certified, RRR).

In fact, here is an excerpt from Bud Hibbs webpage (a GREAT source of information about 'collection agents"
"In a recent brochure sent out upon request, Consumer Credit Counseling Service (CCCS), the largest debt collection agency in America, states the following: "Turn
to a friend. Consider us your friend. A friend is someone you can trust. A friend will speak up for you. A friend can teach you what they know. A friend helps you in more ways then one. A friend can even help you move into a new home. A
friend speaks your language. A friend will meet you in person. A friend lives and works nearby. A friend isn't in it for the money. A friend cares about you."
What CCCS fails to mention is the fact that a friend like they are, gets paid a fat 12-15% kickback for collecting and disbursing your monthly payments and will keep you off the credit market for ten years or more. This friend will provide debt collection services to your creditors. Although CCCS provides limited counseling to debtors, its primary role is as a DEBT COLLECTOR. CCCS is NOT your friend, unless you classify a friend as someone who uses you to make money in the form of a kickback from others, at your expense. Your don't need friends like CCCS!"
Click on http://www.budhibbs.com to see the entire page.

[Edited by Halket on 12-27-2000 at 07:10 PM]
 
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user590988

Guest
Yes I have the information from the ameridebt in writing and the letter from secretary in writing showing me $380 due by november 30th.
this message is to jennfier H
 

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