GHS Solutions Bails on Consumers But Wants Higher Monthly Fee. – Carol

“Dear Steve,

In the spring of 2011 I was concerned about carrying debt into my retirement. I received an unsolicited letter about a federal program that was being offered in Maryland for persons with at least $10,000 in debt. I had about $24,000 credit card debt.

I was contacted by 4-5 companies, one of them was GHS Solutions. I had never arranged for such services before, and am naturally skeptical. I was contacted by GHS many times by phone and reminded that there was a time limit on how long this federal opportunity would be available. When I was still slow to repond passed an initial committment, I was contacted by a company manager – not a sales rep.

I signed the contract which started the withdrawals from my checking account, but did not complete any subsequent requests for paperwork. I did not sign or return the power of attorney document. GHS reminded me in several lettters to complete and return the document so that they could begin their work. I did not.

GHS has withdrawn approximately $389.00 p/month since about June 2011. At first I received a statement indicating the withdrawal and the amounts that were allocated to GHS fees and the amount accumulating to paying my outstanding debts – about $100.00 p/month. After a ferw months I realized that i would not need GHS to resolve the debt. I was able to arrange interest levels which would allow my to pay the entire debt within 3 years.

However, I dragged my feet about notifying GHS that I was withdrawing from the program and am still a GHS client and they continue to withdraw money from my account. Now that they have an on-line account management sertvices I do not receive a statement in the mail, nor by e-mail.

Today I received a 2-page letter from GHS. Paragraph 2 ends with ” Unforntunately the pratical econmic effect of the new regulations has prevented GHS from accepting any ‘new’ customers after October 27, 2010.” Paragraph 4 ends with “.. we have spent the last several months attempting to identify a partner or merger candidate..we have not succeed.” Paragraph 5 “We have recently entered into an agreement where a third-party business process services company will take over our internal operations.” The letter goes on to announce a higher monthly service fee which will be decucted “With your approval..”

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1. Does this mean that GHS has “sold” my arrangements with them to a third party?

2. How could I become a GHS custormer in 2011 if they were prevented from accepting new accounts after 10/27/2010?

I assume I will need the services of a lawyer to resign from customer status, particularly to receive the full amount withdrawn by GHS from my account.


Carol Ann”

Dear Carol Ann,

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

That certainly is a confusing letter. But luckily for you, you only recently enrolled.

You will not need the services of a lawyer to withdraw. But what you will prudently need to do to prevent further withdrawals is to change your bank account number with your bank. While a simple notice should have done or do the trick, it sounds like things are in a state of flux at GHS Solutions and I’m not at all confident your notice will be properly recorded. The last thing you probably want to deal with is another errant withdrawal.

From what you’ve shared it sounds like GHS Solutions is bailing on their clients and either selling their customer base or contracting it out to a third party to service. At the same time they are asking their for more money while they appear to be providing less services.

Your funds should have been deposited with a third party escrow company like Global Client Solutions or NoteWorld. Since GHS Solutions is prevented from deducting any fees until they provide the service, all your funds should be there for you to reclaim. Please contact your escrow company.

If you can, please forward me a copy of that letter you got to click here.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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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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