credit counselor caused charge off

[Barb Gallagher]

I live in Montana. My husband and I entered into a contract with a credit counseling agency in Nov. 2000. The payments to this agency are deducted from our checking account.They entered into an agreement with the bank to pay off one of our credit cards. The first payment they made was lower than agreed, then there was no payment the next month,(it was sent late in the month so it didn't get posted til the next month)because of this the account has gone into charge off. We talked to the credit counseling agency, they admit it was due to payments not being paid as agreed and its their fault but tell us there is nothing they can do that this company is not responsible for the action. Do we have any legal rights as for as this company is concerned. If they received our payments as agreed why are we the ones who get penalized for this. And where do I go from here to remedy this charge off.

 

[loku]

Breach of credit counseling agency

If you lived up to your side of the contract, they had a duty to live up to theirs. From the facts you give, they breached their contract with you, and they are liable for any damages you suffer as a result of the breach. You could go to small claims against them.