I was also ripped off by Debt XS. To anyone that works there, please stop defending the company. It's useless. I have emails and letters, proff of everything. Here's what happened to me:
I was told by Debt XS to send letters to all of my creditors upon entering the program to let them know of the circumstances and that they can direct any questions to Debt XS (which I did). Debt XS even gave me a Creditor Relations 800 number to hand out. After a few months in the program, I was served with a summons, and, days later, a second summons. Two of my creditors were suing for non-payment!
I was lucky enough to be able to call all my creditors and work out interest free payment plans with ALL of them. Although this literally took an entire day (I used a vacation day!) it was well worth it.in the process, I found out that Debt XS had NEVER had any contact with my creditors (this was about six months into the program). I cancelled the account and requested a refund. After two months of being given a run around, Debt XS finally refused stating that they "earned" the fees paid (I have the letter to prove it).
The money was "earned" per the contract at 33% upon entering the program and setting up a file, 33% upon contact with creditors, and 33% upon settlement of debts. I signed the contract agreeing to this and, while disappointed about losing 33% of the fees, it seemed fair that I owed that much for setting up the account. However, Debt XS refused to refund the remaining 66% of the fees. Remember they NEVER contacted creditors or settled any debts, so in accordance with their OWN contract, they never earned these fees and should have refunded them.
I have since filed a complaint with my state attorney general and I strongly advise anyone else to take action against this company. I WILL get my money back from this unethical group whose only goal is to rip off people who are already in financial trouble. Why? Because they know we don't have the extra money lying around to fight them. It's a pretty safe scam.
Contact a consumer advocay group or your attorney general! Please!
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