Debt Management Program

[daz25]

What is the name of your state?I am in New York. I recently signed up my business for a debt management program. I have contributed 4900.00 to this program but they have not paid out or made any arangements for payment with any of my credit cards I placed with them. it's been 3 months since I signed up. I now know that these cards are going to charge off and ruin my personal credit. Is there any way I can recoup my money from this company? They are located in Ohio, and called Amerassist. They had a clause in the contract that if I cancel they are owed 25% of the total amount of debt I placed with them...is that legal to do??? PLEASE HELP

 

[JETX]

Is there any way I can recoup my money from this company?

Who knows?? However, if you have ANY hope of doing so you have to first start by filing a lawsuit against them and hope you win (unlikely).

They had a clause in the contract that if I cancel they are owed 25% of the total amount of debt I placed with them...is that legal to do???

If you signed the contract allowing them to do so, yes.

 

[seniorjudge]

What is the name of your state?I am in New York. I recently signed up my business for a debt management program. I have contributed 4900.00 to this program but they have not paid out or made any arangements for payment with any of my credit cards I placed with them. it's been 3 months since I signed up. I now know that these cards are going to charge off and ruin my personal credit. Is there any way I can recoup my money from this company? They are located in Ohio, and called Amerassist. They had a clause in the contract that if I cancel they are owed 25% of the total amount of debt I placed with them...is that legal to do??? PLEASE HELP

You have been scammed.

 

[Debt Guy]

If you signed the contract, then you knew what you were agreeing to. If you signed it without reading it, shame on you.

Why would you ever sign anything and then ask if it were legal?

Ohio has a credit services organization act -- which might govern this company. You should contact the Ohio Department of Commerce - Division of Financial Institutions and see if they are licensed. http://www.com.state.oh.us/dfi/default.htm

New York has a fairly tough statute for budget planners -- you should contact the New York State Banking Department and see if they can give you some help.
http://www.banking.state.ny.us/orgdir.htm

I think New York is your best bet for taking on this organization.

For the benefit of anyone else who happens to read this post -- sometimes a person can be helped by a debt managment company or a debt settlement company -- the problem is that there are too many companies who are unethical and only exist to separate you from your money.

A ethical company would not charge you in advance for services. Never pay anything in advance of the delivery of services.

 

[foolsmission]

To anyone thinking of using a debt counseling company:
Give the money to a community based non-profit like your local boys and Girls club. You're credit report won't improve, but at least you'll have good karma.