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Home > Reader Questions > I Signed Up and Paid Capital Debt Relief and They Say They Can’t Help Me. – Bob

I Signed Up and Paid Capital Debt Relief and They Say They Can’t Help Me. – Bob

Posted by: Steve Rhode November 22, 2010 in Reader Questions

I signd up with Capital Debt Relief back in April 2009 so that they could help me with my credit card debt. I have been paying tem $230/ month since. Yesterday I recieved a summons to appear in court December 6th. My credit card company is suing me. I called CDR and they told me they are no longer able to negotiate for me because they don’thave an attorney licensed in Missouri. Supposedly, there is a new law in place with no exceptions. They said they could coach me through negotiations or I could take take funds out of my trust acct which is only $1060. My debt is $16,000.

What should I do? Should I consult/hire a lawyer? I’m lost.

Bob

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About Steve Rhode

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.
  • http://aol.com/ John

    I have been enrolled in Capital Debt Relief for the past 2 years at $277 a month. For the first 18 months only $56 a month was going toward my actual debts. I had 4 debts totaling around 16k. I have had at least 6 people at my front door issuing notices of pending litigation. I have been notified to appear in court at least once. The joke about all this is that my wife and I were told that the creditors would settle for less than half of what I owed them and that is the way CDR makes their money. One creditor who tried to take me to court says I now owe them 7k after interest and penalties on the original $5500. Where was CDR?  This was an unsecured loan and I’ve been doing a little legal research.Not thinking,  I told CDR to offer them $3500 but they refused to accept it. I then talked to a lawyer who told me to tell them to f *** off. It has worked so far. He also told me to tell Capital Debt Relieif to f*** off as well. The reason he said the creditor didn’t accept it is because CDR probably made a side deal with them to pay them maybe 2k and CDR would pocket the rest. Talk about scams. if they do eventually win a judgement against me the most they can get is 10% of my weekly $250 I now make. They can’t touch my retirement.  You see these collection people are scavengers who buy up old debts and try to collect. I know I’ll probably end up suing CDR but for now I’ll just let my answering machine deal with the creditors. Funny how 16k in debt is now about 22k. I probably could have settled with these creditors for about 8k if I did it myself in the first place. Why are these buzzards allowed to scam us like this??? Instead of getting out of debt I’m now in deeper and my credit sucks. Shoulda filed bankrupsy in the first place.

    • http://GetOutOfDebt.org Steve Rhode

      Probably. Would have been over and done within within a few months, stopped all the suits and only cost a couple thousand dollars.

  • Damon Day

    Hello Bob,

    I am sorry to hear about your situation. However, let me just take a moment to call out Captial Debt Relief on their very obvious BS. The reason they are not helping you is not because of some new law. The reason they are not helping you is because they can’t and never intended to provide litigation assistance.

    Now, hopefully I am wrong. Because if they are telling you the truth, and you signed up and paid them a few thousand dollars under the promise that you were going to get legal assistance and then a law changed that prevented them from helping you, then they should give you all of your money back since you paid for a service that they either can’t or are not willing to provide.

    Now, getting your money back is a separate issue and please update me on your progress with that. By my calculations you have paid in around 4500 and they claim you only have 1060 available. So I want to know where the other 3500 is and what did you get for that 3500 dollar fee? What is this new law that passed? When was it passed? Did they notify you that they could no longer help you after this law passed or did they continue to take your payments knowing they couldn’t help you. These are the questions I would be asking. Sounds to me like they are just trying to divert your attention from the fact that you gave them 3,500 and they didn’t do squat. You could have gotten yourself sued for free.

    What we need to figure out now is what you should do moving forward. I would need to have a much better understanding of your overall financial situation, but we need to look at bankruptcy as a possible option. We need to know if you have any resources to negotiate and settle this debt, otherwise without the protection of bankruptcy or some settlement agreement, they will obtain a judgment, and then could possibly garnish wages or levy bank accounts.

    So it is very important to look over everything and decide how to best proceed before your filing deadline of December 6th.

    http://getoutofdebt.org/Damon-…

  • http://DamonDay.com Damon Day

    Hello Bob,

    I am sorry to hear about your situation. However, let me just take a moment to call out Captial Debt Relief on their very obvious BS. The reason they are not helping you is not because of some new law. The reason they are not helping you is because they can’t and never intended to provide litigation assistance.

    Now, hopefully I am wrong. Because if they are telling you the truth, and you signed up and paid them a few thousand dollars under the promise that you were going to get legal assistance and then a law changed that prevented them from helping you, then they should give you all of your money back since you paid for a service that they either can’t or are not willing to provide.

    Now, getting your money back is a separate issue and please update me on your progress with that. By my calculations you have paid in around 4500 and they claim you only have 1060 available. So I want to know where the other 3500 is and what did you get for that 3500 dollar fee? What is this new law that passed? When was it passed? Did they notify you that they could no longer help you after this law passed or did they continue to take your payments knowing they couldn’t help you. These are the questions I would be asking. Sounds to me like they are just trying to divert your attention from the fact that you gave them 3,500 and they didn’t do squat. You could have gotten yourself sued for free.

    What we need to figure out now is what you should do moving forward. I would need to have a much better understanding of your overall financial situation, but we need to look at bankruptcy as a possible option. We need to know if you have any resources to negotiate and settle this debt, otherwise without the protection of bankruptcy or some settlement agreement, they will obtain a judgment, and then could possibly garnish wages or levy bank accounts.

    So it is very important to look over everything and decide how to best proceed before your filing deadline of December 6th.

    http://getoutofdebt.org/Damon-Day

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