This is a copy of the letter I am sending certified mail to one of Beneficial's Dept Collectors. I apologize for the length.
At the beginning of December 1998 I was sent a coupon in the mail from Beneficial California, Inc. It was a promotional campaign to offer me a loan. I didn't think they would give me a loan but I called anyway. To my delight they approved me for a loan.
I proceeded to go to my local office and begin the process of filling out the paperwork required. When the loan officer asked about my income I stated that I was receiving Social Security Disability benefits due to being disabled. The loan officer inquired as to the monthly amount and I told her. She stated that because it was such a small amount, she would have to get the OK from her supervisor.
When the young woman returned she asked me if I had any sources of additional income. I stated that I would be attending college in a few short months, but at the time no. I was asked if when I did attend college, would I be receiving any financial aid. I stated yes. I was then asked if I ever babysat, I stated on occasion and the woman asked me what I charged. I stated that I didn't charge because it was for family. The young woman looked at me and said if I was going to charge how much would I ask for. I stated I had no idea. She said that I should charge $ 10.00 @ hour because that is what she used to charge. She then asked me how often I babysat for my family and I stated approximately a total of maybe twenty hours per month. The woman said to please excuse her and that she would be right back. When she returned she stated that there was no problem with me getting a loan.
We finished the paperwork and I was given a check for the amount of $1,264.07.
I made my payments as scheduled and ended up paying off my loan on February 5th, 1999 in the amount of $1,405.00.
Wanting to purchase a vehicle I inquired about applying for a second loan. I was told since I was such a good customer, it wouldn't be a problem.
So on February 24th, 1999 I procured my second loan from Beneficial. The amount was for $ 4,668.98.
I made my payments as scheduled and paid this loan off on April 6th, 1999 for the amount of $ 4,070.54.
Then I turned around and acquired yet a third loan. I was wrong in thinking that I could use this practice to build my credit score. This loan was in the amount of $ 6,416.17. The only difference with this loan was that now I needed a co-signer.
My mother agreed to co-sign since I hadn't had any problems paying my other loans and since I hadn't had any problems with Beneficial, she didn't foresee any problems.
During the month of October I was having some financial problems. I didn't want my mother to have to help me pay the loan so I asked about refinancing my loan. My loan balance at this time was $ 5,197.18. This amount was refinanced and my new balance became $ 6,404.31. I was basically back to the beginning but at least I could keep paying my loan without any problems.
I was very wrong!
Everything went fine until April. My family and I moved to Florida from California. Prior to leaving in April, I went to my local office made my payment and said my good-byes. (It's worth noting that when I refinanced my loan there was a completely new staff working at my Beneficial Branch, when I inquired as to the change I was told that everyone had been transferred to new branches. That should have told me something was wrong!)
Towards the end of April my family and I would learn that our furniture had been hijacked by our moving company (Transworld Van lines Corporation dissolved). This company told my family it would cost an extra $4,000 to get our belongings delivered to our home.
(Side note: upon moving to Florida, My mother, sister and I learned that our Social Security benefits would be cut, due to the fact that the state of Florida doesn't contribute to Disability payments, my benefits were decreased by $ 205 per month.)
All of us tried in vain to get TransWorld to deliver our furniture and belongings. We would have no choice but to combine all of our available monies and pay them what they wanted.
I contacted Beneficial to tell them about my cut in Social Security Disability benefits and the furniture fiasco. I stated to the representative that I would have to make a smaller payment in May. I was told that under no circumstances would I be allowed to do this! I was very upset and then asked the representative if I could re-age my loan and have May's payment bumped the end of my loan. I was told that Beneficial no longer re-aged loans.
I asked this woman if I could speak to a supervisor and was promptly hung up on. I called back and went through the same song and dance with the next representative. I told this gentleman that I didn't know why Beneficial was treating me this way. I was a good customer who always paid on time and always paid what was owed. I had even paid off my previous loans early. This gentleman said he didn't have access to my previous loans and could only comment on my current one.
After asking him if I could speak to a supervisor, he stated that he was the supervisor. I told him that I would be sending what I could. He asked how much and I told him $25.00. He said that would be fine.
After sending the payment I received it back within two weeks. When I called Beneficial I was told that I had signed a contract to pay $ 205.00 per month and that is what they wanted. I once again told my story and was once again told that a smaller payment wasn't acceptable. I stated once again that I would send what I could. On three separate occasions over the next four months I attempted to send what I could. First was the $ 25, then $ 50 and finally $ 100. All of these payments were sent back to me. I might add that Beneficial never even sent a letter stating why the payments were being sent back.
After each payment was sent back to me I would call Beneficial to ask why and again and again I had to tell my situation. I was treated very rudely and was even called some rather harsh names.
Then the phone calls began. Beneficial not only was calling me and harassing me but they started to call my mother due to her being the primary on the loan. When my mother tried to explain everything to Beneficial she was treated the same way as me except for one exception. Beneficial told my mother that they would attach a lien on her home!
Finally in November my mother and step-father had to file for bankruptcy due to their own financial problems. Their attorney told them that since my mother was the primary on the loan she could include it in her bankruptcy, she did so.
February the bankruptcy was discharged.
My monthly statements from Beneficial ceased as did any and all phone calls. I assumed that the matter had been dealt with. I was wrong!
I received a letter on May 5th. The letter was from an Anuja Mhatre from Beneficial Management Corporation. The letter stated she was contacting me regarding my defaulted loan and would expect a payment in the amount of $ 5,433.34 no later than 10 days from the date of the letter.
Needless to say I called her. I once again told her everything and let her know that the loan had been included in my mother's bankruptcy. She told me that that was of no consequence to her due to the fact that I was the primary on this loan. I corrected her and she became irate.
After she verbally assaulted me on being a deadbeat and a crook, I hung up!
Two days later I received a phone call from a Kevin Scott. I started the conversation off by telling Mr. Scott that I was tape recording our conversation. He immediately told me that I did not have his permission to do so. I said fine then we don't need to speak. He hung up. (Please note that whenever I stated that I was going to tape record a conversation, I was told that I wasn't given permission to so. So I began telling representatives that I spoke to, that I didn't want my calls recorded either.)
Approximately one week later I received a call from a Mr. Michael Walker. Mr. Walker was very kind and stated that he would like to apologize for they way I had been treated. He inquired as to my disability and when it had first occurred. I answered his questions and he asked me if I had applied for a Disability Claim, I stated that I hadn't.
Mr. Walker stated that he was going to fax me a Disability Claim Form that was to be completed by my attending physician and myself. When I stated that I was in between doctors, but that I had a statement from my former physician stating that I was permanently disabled, he said that would be fine.
Mr. Walker also wanted proof of my monthly benefits from Social Security Disability, a letter that would show how long I had been receiving benefits, a copy of my Temporary or Permanent Total Disability Certification and a copy of the Application for accidental death, dismemberment and loss of sight Insurance policy form that I signed with my very first loan. (Note: Mr. Walker wanted this form due to the fact that I was instructed to answer no to question # 4 even though I was disabled).
I asked Mr. Walker why Beneficial was now saying that I was the primary on this loan when on their own contract my mother was listed as such. He stated that he didn't understand this either but would find out, he was also going to find out why Beneficial was still pursuing me for the loan when it had been discharged in Bankruptcy Court.
I then inquired as to why Beneficial would not take a small payment until I was on my feet. Mr. Walker said that he was able to make such arrangements for others and to state my request on my fax cover sheet.
I filled out the requested forms, typed up my statement and request, and then faxed everything to Mr. Walker.
Three days went by and I hadn't received word from Mr. Walker as to whether or not he received my fax. When I called his number a woman answered and said that Mr. Walker was no longer with that department. The woman asked if she could be of assistance. I gave my account number to her and stated yet again the whole situation. After I finished she asked if I planned on paying my debt. I stated once again that I was in the process of filing a Disability Claim with Mr. Walker, but would be able to make a small payment each month if Beneficial would allow me. She became irate and stated that only the full amount of the loan was acceptable!
I asked for the woman's name and she hung up.
Then on July 14th I received a letter from a Sergio Rodriquez. I started the process all over. Mr. Rodriquez stated that he would file the appropriate Disability Claim papers and that I should fax him everything that I had faxed to Mr. Walker. I did so.
Mr. Rodriquez called a few days later to say that he had received my fax and was processing my claim. One thing that he did say was that he didn't know how I had even obtained my very first loan. I asked him what he meant and he stated that generally Beneficial has a policy against writing loans to individuals on Social Security Disability and that I hadn't even come close to the minimum income standards. He also stated that even with my mother cosigning on my last loan that our combined incomes didn't meet the standards and since she was also receiving Social Security Disability benefits that the loan officer should not of have written the loan.
Mr. Rodriquez was very understanding and quite cordial to me. He stated that he was the last person in the long line of debt collection procedures at Beneficial and that he was personally going to straighten everything out.
After not hearing from Mr. Rodriquez I tried unsuccessfully to contact him. I always received his voicemail or had to leave a message with a representative who would tell me he'll get right back to me.
So much for Mr. Rodriquez!
I hadn't heard anything from Beneficial or any of their bill collectors until now.
On November 19th I received a letter from your firm. After reading your letter with it's threats of seizure and garnishment, I have decide to seek legal counsel to ascertain if there is enough cause to file a class action lawsuit against Beneficial Management Corporation and Household Finance.
I have spent countless hours reading the stories from others like myself who have been victimized by this company. You can read for yourself their stories at Usa Consumer Complaints.com.
I am enclosing copies of the faxes that I have had to send.
I will be posting a copy of this letter on Usa Consumer Complaints.com's website and giving a copy to my attorney.
Please contact me if you have been or are in the same current position. We need to fight these people and the more of us there are to fight, the harder it will be on Beneficial!
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