Question:
Dear Steve,
I used Centerdon Group to settle my debts for 15 months. They promised me debt settlement in 12 months but never did anything for me.
I ended my contract with said that they would send me a refund of my escrow account in 90 days which hit in December 2019.
They never answer the phone or answer e-mails but I kept on calling and finally got someone and they told me that since I never finished my contract, my hard-earned money was eaten up by their fees and I would not receive a refund.
This company is a law firm but I am not sure if I have any recourse. I am not sure if any lawyers actually work here.
Does a debt settlement company like Centerdon Group allowed to take all of your escrow money if you decided to cancel your contract? They did not abide by the contract at all and did nothing for me.
Justin
Answer:
Dear Justin,
I hate it when these things happen.
This will come down to the easy way, or the hard way. Ultimately the best solution here is one where Centerdon Group values good customer service and will work to come to a mutually agreeable solution. The easy way is when a company says it is better to refund a client for services we didn’t really deliver and leave them happy.
The hard way is when a company digs its heels in and says you are out of luck and they didn’t really provide a service of value.
The first place I’d look is at your client service agreement and see what you agreed to when you enrolled in the program. If you can find the section where they talk about canceling or there is a separate agreement for the company that is holding your money, check what it says.
If the company refuses or is unwilling to work with you to resolve this in an amicable way, then you should read my piece How to Get Your Money Back From a Debt Relief Company if You Feel Like You’ve Been Scammed.
That is a step-by-step process on what you can do to escalate your unhappiness.
It is odd that Centerdon Group, Inc. says they are located at 1800 Century Park East, Suite 600, Los Angeles, CA 90067 (Source) but the State of California says there is no corporation registered to do business under Centerdon Group.
Yet Corporation Wiki says they are registered.
In fact, that address they give comes back as a virtual office. – Source
The Better Business Bureau has a warning for consumers. The BBB says “According to BBB files, our records show that the company has a pattern of complaint concerning consumers paying up front fees for a Debt Relief plan. Consumers allege being charged upfront fees to relieve their debt, per FTC guidelines consumers should not have to pay fees beyond a nominal one time set up fee. Furthermore, consumers allege having difficulty receiving a response or reaching representatives when inquiries arise On February 20, 2018 the BBB contacted the company in regards to our concerns about the amount and the pattern of complaints we have received. Unfortunately, the BBB did not receive a response.” – Source
Based on all of this information, I would hope for the best but expect the worst response from them considering the reviews of others”
- “This is a fraudulent company that is taking advantage of those who are already in need of debt help. My wife and I signed up with them in August of 2017. We were paying $570 a month for a great period of time. We never got any results so I contacted the BBB as well as the California Attorney General’s Office. It as then that we at least got a small portion of our money back. PLEASE DO NOT ENTRUST YOUR CIRCUMSTANCES TO THIS COMPANY!+
- “Centerdon Group is a fraud and scam! Each month Centerdon took over $400 out of my checking account each month for about a year and they said that the money would go towards paying off my credit card debt. Centerdon Group said they would work with the creditors and reach a settlement with my creditors of a guaranteed lesser amount that I owed my creditors. My creditors “Never” were notified by Centerdon Group that they were representing me and my credit card payments went ignored and late fees added up from my creditors putting me further into debt. Centerdon took over $4000 from my bank account and they never helped me nor did they pay my creditors with the $4000 that they took from bank account.”
- “PLEASE DO NOT USE THIS COMPANY. I signed up with this company in May of 2018 and to this date I have paid them over $1500. They never reached out to any of my creditors, they did not answer any calls or returned my called. I would call them to see what are they doing with my money and why haven’t reached out to my creditors. I would have to wait on hold for at least an hour each time I called. When someone would pick up the phone they would always tell that I reached the wrong department (even though they only provide one number to call) and would need to transfer me to another department which would keep me on hold for another 40 plus minutes until I would eventually have to hang up because I have to get back to work. I would leave messages for someone to call me back but no one ever would contact me. I decided to canceled my service with them because of this unprofessionalism and they told me that it would take 60 days after cancellation to receive a refund. I tried calling and emailing them asking for the status and they would only respond by email stating that it takes 60 days to process the refund. After the 60 days they sent me a letter stating that they were keeping all my money plus they never did anything in my interest. This caused me to accumulate even more debit with the late fees due to them not reaching out to my creditors. This should be a criminal act and they should not be allowed to do these things to go hard working people that are just trying to get their lives back on track. Please DO NOT USE THIS COMPANY. THEY WILL TAKE YOUR MONEY AND MAKE YOUR LIFE A LIVING **** LIKE THEY DID TO ME.” – Source
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Centerdon changed it’s name to Hilvanim Group, Inc. on 10/23/18. When you search the CA Secretary of State page, you can see the transition. It is still all the same bad actors at the same locations, just with a different name. The same people are connected to dozens of other similar companies including, World Law, National Civilian Law Center of America, Dell Law Group, Samaritan Law Center, Consumer Legal Services America, Asset Defense Law Offices and Walnut Legal Services.
Steve, your blog is amazing! Thank you for all of your effort. Please continue this work!
Thank you for the update Kelley.
Steve – I am not from California, I am from another state. I guess this company should not have taken my case. I live in PA. How should I handle this? I am so confused.
I think my answer is a reasonable path to follow.
Do you know if these people are real attorneys in California? Centerdon Group Douglas Miller Hector Carreon Jack Karpeles Lauren Bolen?
You can search here. http://members.calbar.ca.gov/fal/LicenseeSearch/QuickSearch?ResultType=0&SearchType=0&SoundsLike=False
Just remember, an attorney can not represent you as an attorney unless they are licensed in the state you live in.
Question asked.
Answered.