Credit Settlement Company

[kevmic]

Please help...I live in Massachusetts and contacted a California company to help consolidate my debt. They promised me I would have get no bad credit and immediately started withdrawing from my checking account to settle my credit. They have $1700 of my money which was suppose to go to my creditors. After just talking with a bank I found out that this will ruin my spotless credit report. I called to cancel and they will not give me any money back saying it covers there costs (I do not see that they have done any work yet except take my money.) I never signed any contract, how can I get my money back? Should I report them to the BBB? They lied to me in more ways than one.
I feel so stupid...they were supposed to help me and now they have caused more trouble than ever.

 

[jlw1000]

If you paid via credit card, write to your credit card company immediately & dispute this charge (they may be able to get your money back).

Do you have anything in writing from this company?

You might want to contact the attorney general in California and discuss this company & what might be done. This might involve mail fraud--if you received solicitation via mail.

Best of luck.

 

[kevmic]

No, the have my checking account number and took it straight from there. I now have closed my account.

They were very proud of their spotless BBB report. Will threatening to damage that do any good? So far I am still playing nice guy even though I am furious.

 

[kxa146]

Please help...I live in Massachusetts and contacted a California company to help consolidate my debt. They promised me I would have get no bad credit and immediately started withdrawing from my checking account to settle my credit. They have $1700 of my money which was suppose to go to my creditors. After just talking with a bank I found out that this will ruin my spotless credit report. I called to cancel and they will not give me any money back saying it covers there costs (I do not see that they have done any work yet except take my money.) I never signed any contract, how can I get my money back? Should I report them to the BBB? They lied to me in more ways than one.
I feel so stupid...they were supposed to help me and now they have caused more trouble than ever.

Is the company paying off your creditors? The debt consolidation companys are to lower your payments and pay off your creditors did they do any of this? Most of these companies are suppose to be free but they aren't. They charge three dollard that they call a donation for each creditor they pay. If you had good credit why would you go through a debt consolidation Co? They are only suppose to take monthly payments that are less then what you were paying to each one. How could they take that much money and not pay anyone if you had a contract. If you did not authorize the withdrawal from your account you can get them for fraud if you did not sign anything. If the deal had not been finalized and you did not sign to authorize them it shouldn't be legal. Is the Company still there? It could of been phony then you are in trouble. It depends on how many times they took money and if they paid creditors as agreed. Unauthorized withdrawal from your account. If they already paid your creditors then they can't give the money back. Look at what really happened before someone can tell you what to do.

 

[jlw1000]

You should report them to BBB, but they have no real BITE. I would still call the California Attorney General.

Also, what did you fill out for them to take money out of your checking account. If they just took the money out based on verbal permission (nothing in writing), then write to your bank and state they did not have your permission to remove any funds from your account. If you gave them permission in writing--is there anything on this form to indicate what services they would perform?

 

[kevmic]

I have good credit because I always pay my bills on time, however we owe a lot of money and these people promised me that they would consolidate my bills and have me out of debt in 3 years. They told me I was under no contractual obligations (and I didn't sign anything) so I assumed I could always get out of it. When I found out that their plan was to ignore the creditors until they settle I realized this would ruin my credit. A mortgage broker told me it was one step away from bankruptcy. We want to buy a home in the near future. Now they are not taking my calls. I did inform the bank and they say once the money is gone they can not get it back. I am at my wits end.

 

[jlw1000]

It appaears the only recourse you have is to contact the attorney general in CA. But with nothing in writing Ithink you may be out of luck.

If your are having trouble paying your bills--you can go to consumer credit counseling services in your area (they are reputable). This is reflected on your credit report, but is viewed more favorable than deliquent payments.

Or you can try to get a debt consolidation loan from a bank & then pay that off.