I am a client of Lifeguard Financial, started in January 16, 2009. The period of which debts were to be is a 36 month program. Total debt involved $28,382.00. Activation fee $4,257.30, maintenance fee is $49.00 per month. Each month the amount of $483.00 is withdrawn from my checking account. Back in December 2010 I was able to contact Lifeguard Financial spoke to a representative explained to her that a judgement was set on my the plaintiff a legal firm handling the debt account. The Lifeguard Financial representative informed me that have I consider filing bankruptcy, I told her bankruptcy this is why I went with Lifeguard Financial to prevent this. Then she tells me that due to my account type legal advice is not availble but we can enable one to represent you in your state. Cost of this is $350.00.
I was contacted by an attorney in Michigan once. I told him of my situation gave him information, he said he would contact the legal attorney and such. Well that was january tried several times to contact the local attorney no luck, tried several times to contact Lifeguard Financial no luck.
Contacted Noteworld Reporter on problem they tried to contact Lifeguard Financial no luck. Since january I have been searching on the net heavily, then found out that Lifeguard Financial is now a different company in New Jersey.
From all my research till now i have tried damn hard. I have been unemployed for over a year most of my unemploymeny check went to pay the monthly amount. My credit rating is shot, but I made sure there was enough to keep the Noteworld Reporter account active, just right after Noteworld Reporter withdrew the amount once I saw it posted on line I called them and had money returned to my account. I figure I do have an account and written obligation to Lifegu ard Financial yes I made the payment each month.
According to my contract once it gets posted by Noteworld reporter then legally the payment has been made. Now I’m at a loss I can’t afford an attorney, I can’t afford to do squat, but I have every letter, documents, every aspect of paper work since I became a client of Lifeguard and I mean every single piece of paper, telephone calls dates, times, etc.
According to my contract that for me to get out of the program would cost me. Todate I have debtor’s which now I owe them a lot more due to interest charges etc..
Now with this judgement i have to figure out a way to get it handled, but just what I really don’t know.
I’m out of ideas what to do is there anything you could suggest or some place to seek help ?
I am very sorry to hear about your unfortunate situation. Sadly, I hear many stories like yours every single day and it is very frustrating to see these scam programs ripping off consumers for millions of dollars. I wish that I could reach every consumer before they enroll into these rip off front loaded “debt relief” programs that do nothing but relieve you of what little money you have left. Sadly I know I can’t reach everyone, they just spend so much money advertising their scams that it is very difficult to get the truth out to consumers.
I wish I could tell you that I could just pick up the phone and demand they return your money, but it appears that these scammers switched their name to SafeTrust Financial and then recently filed bankruptcy. Unfortunately the chances of you getting any of your money back is slim to none. I would encourage you however to at least file a claim in the hopes that there will be some money available to pay back the thousands of consumers that have been scammed.
The reason for the bankruptcy is stated as:
The reason for filing bankruptcy is, “In October of 2010, the Federal Trade Commission (FTC) issued new rules that effectively rendered the Company’s current business model unworkable. Furthermore, the Company has been suffering from consistent customer attrition, which the Company has been unable to counter due to a lack of resources to effectively market the Company’s product to gain new customers.”
Basically when the new law banning these companies from scamming consumers with their upfront fees, their business model was unworkable. This is because it was essentially a ponzi scheme. They were supporting older clients with the big upfront fees that they were charging newer clients. Once they couldn’t do it anymore they folded.
Sadly, many consumers that fell for these scam front loaded debt settlement sales pitches are likely to find themselves in the same boat when the companies they hired finish looting the cash out of the corporation and then seeking bankruptcy protection.
You can find more information about the bankruptcy by reading this article by Steve Rhode.
Now, to address the even larger problem of what do you do now that you are 2 years behind on your debts and have no means to resolve them. The unfortunate answer is that you are likely going to have to file bankruptcy to wipe out the debt and start over with a clean slate.
Here is what I want you to do. Click here to find a local bankruptcy attorney and schedule an appointment to meet, you will be able to get a free consultation. They can review your situation and let you know how bankruptcy would effect you and give you a pretty good idea about what will happen and what is possible both during and after your bankruptcy.
If after talking to the attorney, you find that bankruptcy is not a workable solution for you than please contact me through my website and I will look over your entire financial situation and see if there is some other possible option for you at this point.
Normally I charge a fee for my consultations because I provide honest and unbiased advice about exactly what you need to do, regardless of what it is. I am only paid by my client and am not financially incentivized to push you in one direction or another.
However, given your situation, I would be willing to waive the fee to help you out and then depending on your situation, we could work something out after the fact that would be fair, if there is something you can afford to do once we figure out the best solution.
Please first meet with the bankruptcy attorney and take good notes. Then if need be, you can contact me through my website and use the “Ask a Question” tab at the top to email me directly.
I am sorry my news was not better about Lifeguard and Safe Trust.
Damon is a talented independent debt coach that provides in-depth assistance and consultations for people struggling with debt. If you want a personal debt coach to help you through a difficult situation or want assistance to find secret discounts offered by debt settlement companies I think Damon Day is an excellent person to contact for advice and assistance. He can be reached directly at DamonDay.com
If you have a debt related question you’d like to ask, just use the online form.