Payday Loan Debt Assistance
Date: Fri, 06/17/2011 - 08:45
Hello:
I signed up with Payday Loan Debt Assistance to consolidate debt from several payday loans. They debited my account every payday to the tune of $90. I continued to receive calls from creditors threatening lawsuits.
The creditors told me that this particular company holds the money that they collect and does not pay it immediately. I called the debt consolidation company to verify this, because it was not my original understanding of how things worked.
The debt consolidation company was very vague in their answers. The kept telling me to hold on and let them do the negotiating. Well from where I stand they weren't doing any negotiating. Therefore I stopped payments.
They will not refund the money saying that these fees are non-refundable. I kept a copy of the contract in an email account to which I can no longer gain access.
So my question is, is this a legal practice and if not what should I do?
Thank you all.
I signed up with Payday Loan Debt Assistance to consolidate debt from several payday loans. They debited my account every payday to the tune of $90. I continued to receive calls from creditors threatening lawsuits.
The creditors told me that this particular company holds the money that they collect and does not pay it immediately. I called the debt consolidation company to verify this, because it was not my original understanding of how things worked.
The debt consolidation company was very vague in their answers. The kept telling me to hold on and let them do the negotiating. Well from where I stand they weren't doing any negotiating. Therefore I stopped payments.
They will not refund the money saying that these fees are non-refundable. I kept a copy of the contract in an email account to which I can no longer gain access.
So my question is, is this a legal practice and if not what should I do?
Thank you all.
Hi! Welcome to the Forums! You have been scammed. You have t
Hi!
Welcome to the Forums!
You have been scammed. You have taken the right step by stopping payments to the consolidation company. Do you have a hard copy of the contract? Try to find out your contract. It will be very difficult for you to get any money without the contract. You can consult an attorney regarding this issue or can file a complaint to FTC.
