How can we sue a debt settlement company?

Business 12 views 3 answers
Hello, recently we tried to do a credit card settlement using services of a debt settlement company. They were supposed to negotiate with the creditor, but after several months we figured out that they just collected our money (several thousand dollars) and did not negotiate anything. We stopped paying them, but now they wouldn't return the money we paid despite the fact that they provided no service. The contract we signed with them mentions initiation fee and monthly fee, but they retained much more; they also violated the contract. What can we do to get the money back? Thank you for your help.

Attorney Answers

3
Eric Ridley ·
I deal with debt settlement companies in this exact situation frequently, and I believe they are, for the most part, predatory. Typically, a decent series of letters from an attorney, and a legitimate threat of litigation, is enough to convince the debt settlement company to do the honorable thing and return the money to the client. I recommend you contact an attorney who does this work, and have that attorney engage the battle with the debt settlement company. If you wish, call me and I will analyze your situation in depth for you at no charge.
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Scott Kaufman ·
Give Mr. Ridley a shout...
0 upvotes
Dorothy Bunce ·
Contact your state attorney general as well as the attorney general where the debt settlement company is located. Many are actively involved in pursuing criminal charges against companies that collect large "up front" fees. As part of any plea deal, the debt settlement company would have to pay restitution. Hope this perspective helps!
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