If you are reading this, it is more than likely that you performed a search for corporate debt resolution specialists, or American Finasco on an Internet search engine. Please read this carefully before contracting this or any debt management company who you believe will assist in relieving the burden of a negative cash flow situation in your business. My experience with American Finasco and one of their competitors is a sure indicator that there is a difference between commercial debt resolution specialists. As I write my story, I am very honest on all counts and I hope American Finasco responds in an honest fashion with a rebuttal on this web site.
I contracted American Finasco on June 5. At that time, my consultant reviewed the total amount of debt with which I was having difficulty and together we discussed the total dollars I felt would be available on a monthly basis to pay both my debt and the American Finasco fee. The fee for their service is a percentage of the total they saved during negotiations with my creditors. It appeared that their fee, plus the total settlement with the vendor, would always be less than the total amount that was originally owed to the creditor.
We agreed that $1,000.00 would be my budget for June and the budget for the following 11 months would be $2,000.00 each month. That budgeted total was to include the fee American Finasco was to earn for their negotiation services. These totals were part of an agreed upon contract between American Finasco and my business.
Within the first few months, American Finasco contacted my creditors and made settlements on several accounts that resulted in an average payment for the first four months of $4,022! Obviously far exceeding the budget to the point that I could not make the payments even though I tried. The fee to American Finasco was picked up immediately after the settlements were made so they can be assured of being paid before any other debts are paid. It was a great way for them to get the first of the available funds. When I say their fees were picked up, I mean just that. A VP of the company drove out to my business location and patiently sat there as I wrote out a check. Although I communicated to both of my primary contacts (the VP and the woman who was doing the negotiating with my creditors) on a regular basis that these monthly totals far exceeded the agreed upon budget, no changes were made to correct this matter even though I was promised they would be corrected. When I tried to put an end to more of this bleeding by terminating their services, the VP of the company responded by indicating that he would forward my decision to headquarters. Although I was pleased to get these people out of my life, I was somewhat surprised that he offered no alternative to resolving my debts and keeping me as a client. As time passed, I went on to find that only the President of the company had any authority to suggest or make any resolutions. Because the President was away at a seminar, no solution was to be had. It was only after I contracted another debt resolution firm that an alternative solution was suggested from the President of the company. However, I was unable to accept any assistance from them at that point because I was contracted with a new, more reputable firm as I saw it.
I continued my efforts for some type of restitution from American Finasco. Although I was willing to settle for half of my loss, American Finasco refused and offered a token of $500.00, which I refused. When I suggested arbitration, I was denied my request to have one of my primary contacts in the session by way of telephone. Can you imaging going into arbitration WITHOUT the person who had regular contact with you? The President of the company, once again, was the only person who would be part of any arbitration hearing. Keep in mind that I never had contact with him until AFTER I terminated their services. How could he be an expert in a situation in which he had no involvement? The cards were stacked against me.By the way, when I used my contract as a piece of evidence in our discussions, I was told that it was only a guide and because the budget totals were not on the sheet with our signatures, they were not part of the contract.
You will soon see copies of the signed contract that indicate the budgeted monthly totals, as they will be part of a Picture Report on this web site. I tried to work something out quickly with the President of the company and even suggested arbitration without any success. I only advise you to utilize a service that guarantees a dollar amount from your budget on a monthly basis. Giving an open checkbook to a company is a difficult lesson to be learned. We sometimes get so wrapped up in the thought of being relieved from our debt, that we fail to see the entire picture until it is too late.
Although I may not understand how the services of this company may have worked well for some businesses, I advise that you be very careful of the pitfalls you may fall into as a result of the emotional stress you feel will be relieved. Fortunately, I found another company who is extremely more suitable for resolving my debt and maintaining my budget. They have dealt with far more debt, have created more manageable settlements and put the business in a positive cash flow situation.
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