Innovation Financial Consulting is a debt settlement and debt management company. They are allowed to legally operate in several states, but there are numerous states that they operate out of that they do not have licenses for! What they do:
Debt settlement is for people who have debts that they cannot afford to pay off or have been paying and cannot continue making payments on. When you sign up for one of these companies, they will have you close your accounts with whatever credit cards you have enrolled in their program, and quit making your monthly payments to the creditors, and instead, pay them. These means that your accounts go into default, so there are late payments, then charge-offs on your report, and then the third party collection agencies will start calling after the accounts have been sold. The company saves money up in an account so that you can start saving in order to pay off your now delinquent debts, and they will attempt to negotiate down the balances on the items in the program.in some cases, clients are sued because they have not paid these debts.
Why is this a problem, you might ask? Well, if you are in one of these states, for example: Kansas, California, New York, North Carolina-and you sign up with this company, they will enroll you into their program.
HOWEVER, because they are not licensed to operate in these states, the creditors that they attempt to negotiate down DO NOT HAVE TO HEED THE NEGOTIATIONS! They can also attempt to gather judgments, garnishments, and other nasty legal things against you in order to recover the funds. Also, if a creditor that they are working with finds out that they do not have proper licensing to operate in that state, they don't have to negotiate, and can continue charging you interest and fees on your accounts. They can also sue the company, and YOU, and still collect on what you owe them (which would now include legal filing, court, and attorney's fees), regardless of what you have paid to this company in order to settle these debts.
I urge you, if you are one of the people that has been enrolled in this program, to contact your Attorney General and start making complaints! In many cases, some states even put a limit on what can be charged by a legitimate debt settlement company, sometimes around $50, and this company charges 15% of your overall debt that you will have to pay fees on even if the state law says that they can't charge that much!
This is fraudulent, and can get them, as well as whoever they are working with, into hot water. This company also tells its clients that they have "an actual attorney" and legal team on staff, when their "actual attorney" just up and left the company because of fear of reprisals for operating in states that they are not allowed to! Please be aware! Contact your Attorney General!!! Make certain that you are informed before getting into bed with ANY debt settlement company! If Innovation Financial is contacting you, or you have already signed their contract, have them send you a copy of their licensing document in your state. The states that I've listed were only a few that I personally was aware of.
I chose to remain anonymous because I am currently trying to pursue legal action against them! Watch out for innovation financial!
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