Debt Relief Industry In The News

Debt Management Plan With United Financial Systems Runs Off the Rails

Out of The Morning Call comes the story, Debt management firm mismanages debt, in which United Financial Systems of Margate, Florida is thrown under the bus for collecting money from a consumer and not sending it to her creditor. Oops!

Greene said United Financial Systems withdrew money from her account as scheduled, but failed to make three payments to Chase on time. It missed the March payment but made it later that month. It also missed payments in May and June.

That resulted in several collections calls a day from Chase.

“They were supposed to be there to help me, not to ruin me,” Greene said.

The lack of payments got her booted out of a special program Chase offers to customers enrolled in a debt management plan. While in the program, she had been offered a 6 percent interest rate and no late fees, down from a rate of 26.99 percent.

In June, Chase told her late fees would resume and her interest rate would be “adjusted” according to the card terms — which could have meant a jump to 29.99 percent — though it never raised the rate.

She said she told Chase the overdue payments were not her fault. She said the bank didn’t want to hear it.

I Was Surprised

I was surprised to see some claims on the United Financial Systems site from the old credit counseling days. Claims that I thought most companies had stopped making.

They are an IRS Nonprofit Company

Many of the groups I check on that claim to be not-for-profit are not legitimate IRS approved companies, United Financial Services is. Here is their 2009 public return to prove it.

Consumer Problems

The mark of a good company is not if a problem is going to occur, it is how they handle it when it does happen. There is no reason why a consumer should not have their payment transmitted to the creditor on a timely basis.

See also  United Financial Systems - Scam, Complaint, Review, or Praise?

I’ll contact the company and ask them to post a comment so we can hear their side of the story.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


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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.

250 Comments

  • I just found your blog and I am not surprised. The owner, Ron Parks is a scam artist. He owes my sister and I money for working for him and owes many former employees and former clients a lot of money. He hides behind claiming he is a Christian. A true Christian would not do the things he has done. My sister and I were hourly employees. Without notice we showed up to work one day back in late 2004 (when it was still United Financial Services and were told we had to be out of the building by 1 PM that day that the business was closing. I was given a check a few days later and nothing was given to my sister. I argued the amount of my check was wrong and was told they were changing me to commission only and could only pay me on contracts that they had already been paid for. I did go back several times over the next couple of months following when they were supposed to close and no one was there. One day I went and finally the office was open. I was talking to a supervisor and in walked Ron Parks. I talked with him about the money he still owed me and he verified my address and phone number and said he would send me a check for what was still owed to me.  I never received anything from him. After that I was unable to go back to the office because I had begun new employment in which my hours kept me from being able to go to the United Financial office when they were open. Whenever I called the phone numbers I always received the voice mail where I left a message, but of course I never received a call back. The State Wage and Hour office could not reach them after that and so there was nothing we could do about. The company apparently reopened later under a changed named of United Financial Systems. Unfortunately the laws are written to better protect business owner, not the employees or clients. Did you know that in the state of Florida a business can operate making less than $500,00 per year and close their doors and not be obligated to pay the employees? Plus, no matter the rate a person is hired at, Wage and Hour will only go after an employer for minimum wage. Oh yeah, there is no law allowing for breaks and lunches. Those are only company policies and Wage and Hour does not enforce that.

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