Think I screwed myself w/asking a debt sttlment co for help
Date: Fri, 12/14/2007 - 20:47
In a panic I called a debt settlement company who offered me the chance to be debt free in two years at $400/mo
I jumped at the chance.
Well it's one month short of two years and I have two cc's left.
Worse yet I just received a summons from CACH (Harry Byck) for one of the cc companies saying I owe $21,000. The original debt was $11,400. Well after two years the interest has accumulated to $21,000.
The debt settlement company I work with said I have to respond to the summons (which I am well aware) BUT they cannot offer legal advice.
They said I could probably settle but would need more funds which I clearly do not have. I currently have only have $2,000 in funds available.
The other option would be to go into an installment with the collection agency but it would have to be for the full $21,000 and later on the settlement amount could change. I find that strange because once an agreement is made I seriously doubt CACH is going to settle for a lesser amount.
I almost want to cease all communication with this debt settlement company, who by the way has recently changed names and I believe was sold because the people I was working with seems to have disappeared.
I think I was scammed into thinking things would work out and they cared.
All they did was settle two accounts (the lower ones), made a profit from this and left two other accounts hanging and accruing interest.
I know I signed the paperwork acknowledging all of this but clearly did not understand their business. Wait and wait, the balance goes up, then settle for the higher balance so they make 25% of what was saved.
On top of it all mail has been going to this company so even if a settlement had been offered I did not see any correspondence. I put my trust in them.
Any advice from anyone would be greatly appreciated.
My first piece of advice would be to speak to a lawyer. MY secon
My first piece of advice would be to speak to a lawyer. MY second would be to gather all documentation from this company that you have avaliable. Also write to your remaining creditors for itemized statements so that you can see exactly what happened to the accounts.
You may likely be able to settle the debt by half with the collection agency yourself if possible. Of course make sure they give you an agreement letter before you hand them any money. They may be understanding and they may not be. It's worth a shot.
I'm with FYI on this. Talk to a lawyer, now. Also talk to your s
I'm with FYI on this. Talk to a lawyer, now. Also talk to your state Attorney General's office. We had a debt-reduction outfit here several years back that was eventually closed down by the AG's office. The owners are now guests of the state Corrections Department.
Thanks FYI and unclewuf. Guess I need to get an attorney. Neve
Thanks FYI and unclewuf.
Guess I need to get an attorney. Never had one before and quite honestly, how am I going to afford one.
As far as calling the State AG in New Jersey, this company I signed my life away with is located in California.
Can I still make a complaint in California with the AG there?
The more I read the more I get sick to my stomach.
So these past two years all correspondonce has been out of my hands and any deals I would not know about. If an offer was made how would I know if I got no mail on it. Obviously if the offer was not low enough why wold they settle when they wouldn't get a high enough cut.
I am also soooooooooooooooo embarassed to speak to an attorney.
But am I stuck on the $21,000 in debt when I turned it over at $11,000 to this other company representing me.
you should make a complaint the the attorney general in your sta
you should make a complaint the the attorney general in your state, as well as what ever State Agency is responsible for licensing debt consolidation companies. You could also file a complain with the attorney general in California, but it is MOST impoiratant to do so in YOUR state.
Check out naca.net for more information on attorneys that may be able to help.
Many offer initial consultations for free.
Quote:Thanks FYI and unclewuf. Guess I need to get an attorney
Quote:
Thanks FYI and unclewuf. Guess I need to get an attorney. Never had one before and quite honestly, how am I going to afford one. As far as calling the State AG in New Jersey, this company I signed my life away with is located in California. Can I still make a complaint in California with the AG there? The more I read the more I get sick to my stomach. So these past two years all correspondonce has been out of my hands and any deals I would not know about. If an offer was made how would I know if I got no mail on it. Obviously if the offer was not low enough why wold they settle when they wouldn't get a high enough cut. I am also soooooooooooooooo embarassed to speak to an attorney. But am I stuck on the $21,000 in debt when I turned it over at $11,000 to this other company representing me. |
File the complaints as LCW said. It's important. Scream just as loud as you can, they will listen. While you're at it, you should probably file a report with the FTC and ripoffreport.com. If the consolidation company did screw you over, you might just be helping to keep someone else from suffering the same thing. Never know when a few extra karma points could come in handy.
And please, talk to an attorney. There's no reason to be embarrased about it. I can pretty much guarantee you that yours will not be the most embarassing situation the attorney has ever seen. I had that thought going into my divorce, because my situation [I thought] was way outside the norm. My attorney handled the matter with aplomb. He also shared a couple of incidents from his experience that let me know, in no uncertain terms, that my case was not the wierdest one he'd ever taken. Just remember to be absolutely straight-up and honest with him. Otherwise, he can't help you as well.
As to affording an attorney... As LCW said, many will give you an initial consultation for free. Beyond that, you may find that you can afford it after all. Remember, you aren't gonna be the first person who's strapped for cash that he's talked to this week. If it turns out that you really can't afford an attorney, look into your local legal aid organizations. There's always a way, unless you give up hope.
First and foremost I am honest. And I totally did everything th
First and foremost I am honest. And I totally did everything this debt settlement company wanted me to. I checked the paperwork (contract) I signed and everything looks like it is going to backfire on me.
Perhaps a little naive in this one. Boy I wish I had come here to this forum before and probably could have been out of this mess by now.
But here I am today, I have to deal with what I got and a mess is what I got.
I really thought this debt settlement company would help me and there would be no summons at any point.
Now they say because I have no money it's my problem and their firm will help in replying to the complaint.
Before I reply, I am waiting for their response on how to proceed.
I will surely share the info (b.s.) I receive from them so everyone can have a good laugh. Whatever they advise me to do I doubt I will listen.
Think I am on my own from now on.
More to come.............
None of us ever said you weren't honest, Guest. I only meant to
None of us ever said you weren't honest, Guest. I only meant to advise you not to allow shame or embarassment to interfere with answering the attorney's questions. I hope you didn't misinterpret my words. If you did, I'm very sorry. I didn't mean to hurt.
It sounds like you have the most important things going for you. Honesty, integrity, and a willingness to take responsibility will get you through times of no money easier than money will get you through times without the other qualities. Besides, you can always get more money.
Best of luck to you, and do post back. I'm interested in seeing how this works out. You might also think about becoming a member here, so we have something to call you other than 'Guest'.
Thanks uncle! Didn't mean to sound like I was defending myself
Thanks uncle!
Didn't mean to sound like I was defending myself when I said "First and foremost, I am honest". I was trying to relate first of all I have nothing to hide but secondly this is what got me into this mess to bein with. I trust too many people and sometimes may be a little naive.
I am not sure why I am showing up as guest. I logged on, ????
Well, I got an email from my debt settlement who said they are making an offer with this debt collector, wait until the end of the week and they would assist me in replying to that summons.
Can't wait to see what they come up with....Anyhow, got a name of an attorney and trying to set up an appointment after the holidays.
BTW - the name of plaintiff is CACH Of NJ, LLC but I cannot seem to find them in the book anymore. Looked on NJ's web site for licensed professionals and nothing. Can they sue me using an attorney in Pennsylvania if their business isn't legit in NJ?
Do a search on this site for CACH. You'll probably find more tha
Do a search on this site for CACH. You'll probably find more than enough material to keep you occupied. They're one of the bad ones, IIRC.
What is the name of the debt settlement company you are working
What is the name of the debt settlement company you are working with? I was scamed by one that also changed names mid-stream. Your story sounds so like mine.
