I Signed Up With ABM Debt Services and Now I’m Being Sued. – Linda

“Dear Steve,

I joined up with a ABM Debt Services a year and half ago, the first 12 months most of monthly fee went towards my fee to the company and the remainder went into a reserve account for future settlements on my credit cards.

Now that I am past that initial 12 month period, all of my payments (except a $20 monthly fee) go into my reserve account. When my credit card companies contact me I was told to forward them to my Debt company and they would handle it from their, such as any settlements or how the length it would take till I would have enough to make a settlement. The credit card companies are calling me again telling me that they have gotten no response from my debt company, they have left numerous messages with no such luck.

Last week I was served papers to appear in court for one of the credit cards and now I cant get a hold of the company. I too, have left message after message. I only have 30 days to appear in court and don’t want to drag my feet with this company.

I am able to pull funds out of my reserve account without my debt company and settle with the one credit card company. Though I am not sure what to do about the Debt Company I signed up with? Do you have any suggestion?

Who would I file a complaint with about this company, I would hate for anyone else to get stuck with a company that doesn’t stick behind their customer.

Thanks so much, any advice would be greatly appreciated!!

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.


Dear Linda,

Sadly, I’m not surprised. I have heard much the same thing from consumers all across the country who are working with a wide variety of debt settlement companies. It certainly appears the settlement company was interested in communicating when they were waiting for their money.

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The reality is that working with a debt settlement company does not alter your responsibility to repay a debt you owe. If you stop paying your creditors and instead save the money in an escrow account a creditor can sue you for non-payment. You don’t seem to have much of a defense here with the creditor since you elected to not send payment to them.

If you are unhappy with the services provided to you then you might want to contact your attorney general in your state and local BBB to file a complaint. Getting the word out on sites like this or maybe writing a complaint on RipoffReport.com will help to spread a warning message to others as well.

Please update me on your progress by

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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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