I am writing to you today to detail my negative experiences with a credit counseling service having offices in Florida and New York. More specifically, I am writing to you because it appears that no one else is willing and/or able to assist me.
In October having an excessive amount of debt and looking for options for debt consolidation, I saw an on-line ad for a credit counseling service, Elimidebt. The program sounded terrific. Elimidebt would negotiate with my creditors to reduce my interest rates. I would pay Elimidebt on the 16th of every month and they would distribute the money to my creditors.instead of thirty years, my bills would be paid off in four. I would have to pay a one-time, voluntary, non-refundable contribution to get started.
My counselor was quick to inform me that, should I remain in good standing, this money would be refunded to me in the form of my final payment. Even better, there was a possibility that Elimidebt would make my final two payments. I was even advised that a credit counseling service would not have a negative impact on my then clean credit report. Famous last words.
On October 3, I signed the contract and faxed it back to my counselor. This was the beginning of the demise of my clean credit. Of course by making the contribution equal to my monthly bills, I was concerned about being able to make the payments to my creditors for the month of October. My counselor assured me that as long as I paid the finance charges, Elimidebt would clear any late fees. I paid the minimum payment on all of my cards except for my MBNA accounts, of which I paid the finance charges instead of the minimum payments due. On November 2, my creditors accepted the proposals from Elimidebt. From this point on, Elimidebt should have been managing my account.
Elimidebt shows record of having computer problems in November and December. During this time period, the scheduled payments were not made. However, except for December Elimidebt took my money as scheduled. Payments were resumed in January. At that point, the damage had been done and catching up was a domino effect of delinquencies. I have a series of delinquent payments on my credit reports ranging from November through February. I have been formally disputing the delinquencies since March.
As if the missed payments and delinquencies on my credit report were not enough, I have had to battle Elimidebt every step of the way. I remained enrolled in the program through June thinking that as a client they would be more apt to assist me. Much to my dismay, this was not the case. Most of my calls for assistance resulted in me being turned away. I was advised that Elimidebt does not report to the credit reporting agencies, that they were not allowed to advise me and that the delinquencies were prior to my enrollment in the program. If you compare the dates on my credit report to my enrollment dates in the program, you will see that this last statement is clearly not true.
My point is basically that my dealings with Elimidebt have been very disconcerting.
I realize that my $711 contribution is non-refundable. However, I feel that Elimidebt voided my contract with them when they failed to pay my creditors as scheduled and previously agreed. Therefore, I would like my $711 contribution refunded to me. Had they made the scheduled payments, I would not be in this situation. I believe that this company should not be in business or, at the very least, they should be monitored much more closely. I do not want to see anyone else in the situation that I have found myself in or that of so many others like me.
People look to credit counseling services such as Elimidebt to avoid bankruptcy and to try to get ahead. From my experiences, as well as postings I have read on the internet from other credit counseling customers, I would have to say that they do not help but hurt. They should be held accountable for their errors instead, the consumer is penalized.
As I mentioned previously, I have not been able to find anyone to assist me. I have been in touch with a lawyer whom advised me that a class action suit would be his first suggestion. However, there is an arbitration clause in the contract. I have contacted the Attorney General's offices in the states of New York, Florida and New Jersey who either advised me to contact another office or told me they would file my letter. I have also contacted the Federal Trade Commission. They advised me to seek private legal counsel. At this point, I am not sure how to proceed other then to ask for your assistance.
Please don't let Elimidebt and other credit counseling services continue to run their businesses in this manner.
Thank you in advance for your anticipated attention to my situation.
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