Debt Settlement

Can I Get My Money Back From Actify Solutions?

Written by Steve Rhode

Question:

Dear Steve,

Joined Actify Solutions in September 2017 in response to more than 20K in credit card debt.

I was almost 30K in total credit card debt in 2017. My debts were coming due and to delay filing for bankruptcy I joined their service. I paid about $267 per month for 12 months during which time they fought with my creditors and I was left alone, more or less.

Last August my wages were garnished by one of the debtors (Virginia Credit Union) so I filed for chapter 1[3] bankruptcy to stop this garnishment. When I told Actify Solutions about my bankruptcy they said they could not help me anymore. Is there any way I can get a refund on the $3200 I paid them? I have called them repeatedly. They replied someone would call back but they never did.

Louis

Answer:

Dear Louis,

It seems what you’ve got here are a number of different issues.

1. I’ve seen a lot of debt relief company contracts and they all or nearly all do mention the possibility of being sued when you stop making your debt payments.

2. If you had your wages garnished you would have first been sued and notified of the lawsuit. You would have had an opportunity to respond to the lawsuit or give your debt relief company a chance to negotiate with the creditor and/or attorney representing the creditor.

3. It is not clear if the money you were sending Actify was being saved in an account to use for settlements or they were taking the money in fees. You should look back at the original client agreement you signed and see if it mentions an escrow company or a special purpose account that was holding your funds. Any money not taken by Actify should be available to you in that account. Actify should not have collected fees before settlement agreements were agreed to and payment made.

READ  Actify Solutions is a Credit Repair Company, Right?

4. Somehow your communications with Actify were broken long before you filed for bankruptcy. It does not sound as if you were communicating with them when you were first sued or that they were trying to settle the account even while it was in litigation.

Can you provide me with any additional information regarding the situation by updating me in the comments below?

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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