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What can be done about an out of state credit consolidation company not doing their job?
Question : What can be done about an out of state credit consolidation company not doing their job?
I have a friend whose husband was seriously injured and now mentally impaired. They have 200,000 in debt and they hired a California debt consolidation company who was supposed to stop creditor harassment. The company takes $ 200 out of her bank every month and yet she still recently got sued by a collection agency. The company promised her that they were contacting the collection agency, and yet it is documented that they did not. She is so scared and has signed a very indepth agreement with this company that she feels she will not be able to get out of. I don’t know where to direct her.
consolidation company
Best answer:
Answer by mommy2sam
This happened to my friend contact a lawyer immediately. She ended up having to file bankruptcy.
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#2 written by dougzinboston 1 year ago
Contact a personal lawyer, her state’s attorney general, the consolidating company’s state attorney general, the better business bureau nationally and between the two states, and have her go to the company’s website. If the company is affilited with any groups, certified by anyone federally or locally, any federal charters…or anything of the sort. If she has definite proof that the company has never made contact, she may have a case against the company.
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I hope all those people on Yahoo Answers who keep recommending “credit consolidation” These companies are scams and totally worthless.
If your friend is in that much debt, and little income, your only real solution is to discuss this with a bankruptcy attorney.
Credit repair companies will call all your creditors, but there is no law or requirement that they have to negotiate or do anything with them. Waste of good time and money.