“Dear Steve,
We cannot thank you enough for giving those, like us, somewhere to turn for honest help and answers.
We signed with New Leaf Debt in February, 2010. Before I closed the account with Global Client Solutions in December, 2010, this account was debited by New Leaf a total of $5395.42 for monthly maintenance fees, an initial set-up fee and monthly enrollment fees.
They had only settled (after we faxed them the letter stating the collection agency was offering a reduced settlement) a small Menard’s account. That is how they “settle” accounts. I can do that myself!
After missing 2 payments, we were sued by American General and basically New Leaf gave us ways to stall, so they would have more time to negotiate.
The attorney for American General said they never negotiate with debt settlement companies. Surely New Leaf knows which companies will negotiate with them and American General was not one of them, yet they took the fees anyway.
My husband’s wages are now garnished for over $500 a month. In addition, since we were dragging it out, it just added to the court costs and attorney fees we owe.
Before we signed the contract, New Leaf said they would be contacting our creditors within 3-4 months; they did not.
We are following the steps you listed to recover our money. Attached is a copy of the certified letter we sent to New Leaf Debt, showing the address where we sent it. A week after it was mailed, we received an email from them, saying they hadn’t heard from us. I emailed them back, attaching a copy of the certified letter. We have not heard anything from them or GCS.
How do we know the cerified letter or email went to someone that had the authority to offer us a refund? We are sending the complaint letters/forms today. We want to be sure when we send New Leaf copies, they make it into the hands of the person that has the authority to respond and make the decision to offer us a refund. How can we find out who to address the letter?
I found out the Federal Trade Commission passed a law that debt settlement companies can no longer charge any fees until they have settled the debt. This went into effect on October 27, 2010, yet New Leaf Debt continued to debit our account and charge us fees on accounts they did not settle. Are they allowed to do this, since our contract began prior to the new law going into effect?
In March, 2010, when we were one payment behind, a representative from American General came to our door. My husband answered the door and told him that as soon as we had the money he would pay it. The following night, the same thing happened. Three times within a one week period of time, a representative from American General was at our front door. We have their business cards; one representative came twice, the other once. We have 2 boys, ages 9 and 13, that were asking what was going on.
We try to keep our financial problems away from them. From what I have read, they are allowed to come to our home, but at what point does that become harassment? Is there anything we can do about it?
Thanks, Vicki ”
Dear Vicki,
It looks like you need a two stage approach.
First, we need to tackle the underlying debt problem. In order to stop the wage garnishment and prevent any further suits you are probably going to need to file bankruptcy. Please consult with a local bankruptcy attorney.
Second, hopefully you sent your first letter by certified return receipt requested mail. The return receipt card is all the proof you need as evidence they received it. If they then claim they did not get it, they are simply stalling.
To pursue the refund, keep following the process. It sounds like you’ve made some initial progress but only up to step 10. The refund process is not a sprint. I need for you to take a tortoise approach, slow but steady.
My friend
Oh yes, the new FTC telemarketing sales rule on fees does not apply to people that enrolled before October 27, 2010.
Please post your responses and follow-up messages to me on this in the comments section below.
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You appear to be under the impression that a loan must wait to charged off before a creditor can sue. That is incorrect.
A charge off is just an accounting procedure and has nothing to do with the underlying debt. Creditors could sue as quickly as the account defaults if they wanted to. In the debt settlement space I’ve seen this more often these days when a consumer fails to pay and the company is notified the person is working with a debt settlement company or gets a power of attorney. A few creditors are sending those accounts straight to legal.
The reader questions are all real and come from readers.
Damon Day does not pay me.
Mimi,
Certain creditors will place accounts with attorneys as soon as they receive the LPOA from the settlement company whether charged off or not.
Been that way for years. Companies still do it to the detriment of their clients.
No hole here.
Bulb
Steve do you make these letters because there is no way someone gets sued within 2 months of missed payments… another hole in this website…. its not even charged off by then lol I stoped reading after the 2nd line.
My friend Damon Day is now offering a service to help consumers recover money on a no win / no fee basis. Please contact Damon Day if you would rather have someone else pursue this for you. Otherwise. keep following the process. Be the tortoise
then damon day pays you right!!!!! this website is a scam
Steve do you make these letters because there is no way someone gets sued within 2 months of missed payments… another hole in this website…. its not even charged off by then lol I stoped reading after the 2nd line.
My friend Damon Day is now offering a service to help consumers recover money on a no win / no fee basis. Please contact Damon Day if you would rather have someone else pursue this for you. Otherwise. keep following the process. Be the tortoise
then damon day pays you right!!!!! this website is a scam
Mimi,
Certain creditors will place accounts with attorneys as soon as they receive the LPOA from the settlement company whether charged off or not.
Been that way for years. Companies still do it to the detriment of their clients.
No hole here.
Bulb
You appear to be under the impression that a loan must wait to charged off before a creditor can sue. That is incorrect.
A charge off is just an accounting procedure and has nothing to do with the underlying debt. Creditors could sue as quickly as the account defaults if they wanted to. In the debt settlement space I’ve seen this more often these days when a consumer fails to pay and the company is notified the person is working with a debt settlement company or gets a power of attorney. A few creditors are sending those accounts straight to legal.
The reader questions are all real and come from readers.
Damon Day does not pay me.
I believe I may have been the consultant that enrolled Vicki into the program she is discussing with you. If he last name starts with a R than my memory serves me correct. Vicki this is Steve from NLD, if you are still having any trouble call me and I will try to help.
I remember this because when when you gathered your info you disclosed the AG loans etc and the debt piled up pretty high. Also, I believe Dennis did contact me once at the beginning of all this unfortunate turn of events. I am not skilled in back end services so I may not have been of much help at that time, however, regarding a refund sometimes I can escalate it or get it out of torouise speed as Steve get out of debt calls it.
I’m not promising any miracles, I’m not the ultimate decision maker in these mattes. However, I had contact that does have some power and had done some pretty amazing things for me recently.
Also keep in mind that getting out of debt is not easy, especially with the amount of debt you had accumulated. Additionallly, many people put many hours of work I’m sure trying to get AG to settle. Lastly, it is disclosed that a creditor can pursue a judgement and/or garnishment in the EP that was signed I would imagine. Despite all that I think I can and I definetely want to try and help you. It kills me to see this kind of thing. I wish their was a program that could guarantee a creditor woud never take your account into a legal status, but it just doesn’t exist. You can’t settle debt without taking any risks to my knowledge.
Also, I have learned with many of those loans i.e. American General they are more apt to put the account into legal status. Sometims they classify the debt as a secured loan because in the fine print they may have had you secure it maybe from your T.V. to your bread toaster.
Nevertheless, if you are still needing assistance or want to speak with me you should have my direct number and email still if I was your DC. Also, Steve get out of debt is correct about maybe filing BK at this point. Debt settlement is an alternative or last option you take to try and prevent BK, but if it doesn’t work out than I would personally file and in many instances the creditors end up getting little to nothing and the consumer (you) can get a second chance.
Note, I am not a an attorney and this is not legal advice. Also, if you can keep this message private please. Intended recepient is valerie.
Privacy note – The information contained in this letter is intended only for the use of the individual or entity to which it is addressed and it may contain information that is privileged, confidential and/or exempt from disclosure under applicable law. If the reader of this message is not the intended recipient (or the employee or agent responsible to deliver it to the intended recipient), you are hereby notified that any dissemination, distribution, or copying of this is prohibited. If you have received this letter is in error, please notify the sender by telephone call at the number listed above or by return e-mail.
I believe I may have been the consultant that enrolled Vicki into the program she is discussing with you. If he last name starts with a R than my memory serves me correct. Vicki this is Steve from NLD, if you are still having any trouble call me and I will try to help.
I remember this because when when you gathered your info you disclosed the AG loans etc and the debt piled up pretty high. Also, I believe Dennis did contact me once at the beginning of all this unfortunate turn of events. I am not skilled in back end services so I may not have been of much help at that time, however, regarding a refund sometimes I can escalate it or get it out of torouise speed as Steve get out of debt calls it.
I’m not promising any miracles, I’m not the ultimate decision maker in these mattes. However, I had contact that does have some power and had done some pretty amazing things for me recently.
Also keep in mind that getting out of debt is not easy, especially with the amount of debt you had accumulated. Additionallly, many people put many hours of work I’m sure trying to get AG to settle. Lastly, it is disclosed that a creditor can pursue a judgement and/or garnishment in the EP that was signed I would imagine. Despite all that I think I can and I definetely want to try and help you. It kills me to see this kind of thing. I wish their was a program that could guarantee a creditor woud never take your account into a legal status, but it just doesn’t exist. You can’t settle debt without taking any risks to my knowledge.
Also, I have learned with many of those loans i.e. American General they are more apt to put the account into legal status. Sometims they classify the debt as a secured loan because in the fine print they may have had you secure it maybe from your T.V. to your bread toaster.
Nevertheless, if you are still needing assistance or want to speak with me you should have my direct number and email still if I was your DC. Also, Steve get out of debt is correct about maybe filing BK at this point. Debt settlement is an alternative or last option you take to try and prevent BK, but if it doesn’t work out than I would personally file and in many instances the creditors end up getting little to nothing and the consumer (you) can get a second chance.
Note, I am not a an attorney and this is not legal advice. Also, if you can keep this message private please. Intended recepient is valerie.
Privacy note – The information contained in this letter is intended only for the use of the individual or entity to which it is addressed and it may contain information that is privileged, confidential and/or exempt from disclosure under applicable law. If the reader of this message is not the intended recipient (or the employee or agent responsible to deliver it to the intended recipient), you are hereby notified that any dissemination, distribution, or copying of this is prohibited. If you have received this letter is in error, please notify the sender by telephone call at the number listed above or by return e-mail.
You may also have a harassment claim of Unfair and Deceptive Acts and Practices violation for American General coming to your door.
You may also have a harassment claim of Unfair and Deceptive Acts and Practices violation for American General coming to your door.
Please be aware that if you file bankruptcy quickly, which is needed to stop the garnishment, your ability to recover the money you sent to New Leaf is considered an asset of the bankruptcy estate.
So unless you can exempt it, it may become an asset that the trustee might want to pursue. Without knowing what state you are in, it may be easy or hard to exempt this “asset”.
There was a good ruling today in an Iowa bankruptcy court that allowed a debtor to pursue this type of claim in the bankruptcy court. Most of these debt relief companies tell you there option is better than bankruptcy. When they do that, they must give bankruptcy disclosures, but never do it. Once they fall to this, they are subject to the bankruptcy court’s jurisdiction.
Please be aware that if you file bankruptcy quickly, which is needed to stop the garnishment, your ability to recover the money you sent to New Leaf is considered an asset of the bankruptcy estate.
So unless you can exempt it, it may become an asset that the trustee might want to pursue. Without knowing what state you are in, it may be easy or hard to exempt this “asset”.
There was a good ruling today in an Iowa bankruptcy court that allowed a debtor to pursue this type of claim in the bankruptcy court. Most of these debt relief companies tell you there option is better than bankruptcy. When they do that, they must give bankruptcy disclosures, but never do it. Once they fall to this, they are subject to the bankruptcy court’s jurisdiction.