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We Signed Up With a Debt Settlement Company. They Take Our Money But We Can’t Reach Them. – Karin

“Dear Steve,

We have signed up with Allego law in Huntington, NY. 12/15/08. With the exception of talking to them when signing up we have not had any correspondence wtih them. We have tried writting the via mail, sometimes our emails are getting kicked back, creditors still call, the sherriff still shows up. Allegro told us as long as we did not hear from them that things are going as planned. We are reading very disturbing things about Allgro. We feel very uncomfortable about where are money is and going. We call and call and we are on hold for hours and no one picks up. (2 1/2 hours +) We feel we need to get out but we do not know how.Can you help us?

Thank you in advance for your time.

Sincerely,

Karin”

Dear Karin,

That’s horrible. I’m so sorry you are having to live through that mess. The Allegro Law situation is a mess. I actually now think the situation is worse now since the court receiver has taken it over than before.

I think the most logical move now, based on your customer service and what we know about the Allegro debacle is to close your bank account and open another one to prevent any additional debits from your account by Americorp, the designated Allegro servicing company.

Then you can send a certified return receipt letter to Americorp asking for your money back. Most of the up-front money paid was going to fees under the Allegro Law deal but most of the fees will be lost in the liquidation of Allegro by the court. On this deal, you are getting screwed twice.

I would also urge you to write a letter of complaint to the Alabama Attorney General at:

Consumer Affairs Section
Office of the Attorney General
500 Dexter Avenue
Montgomery, Alabama 36130-0152

READ  Regulation of Debt Settlement Companies Looming

Be sure to detail the treatment you have received since the state of Alabama took over your account. Unless people complain they won’t take action. They also have an online complaint form.

Once you extricate yourself from the Allegro Law debacle we still have to deal with the debts. Now that you are getting sued over these debts your only logical option to stop the suits is going to be bankruptcy. Find a local consumer bankruptcy attorney you like and go in and talk to them.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

morehelp1

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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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.

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