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Did I Just Get Cheated by the Debt Relief Company?

Written by Steve Rhode


Dear Steve,

I recently canceled my services with a well known debt relief company. I signed up with them because I thought that it would be safe to do so and I was told by the guy who had charmed me into signing up with them that I would receive a full refund. I then agreed to the stated price in order for me to pay off my creditors but then when I went onto their website I saw that my money was taken out but NOTHING had been done to pay off my creditors.

Due to their lack of work I canceled the service immediately and I was told that I would receive a full refund in 10 business days. I did in fact but the check came from another creditor and it was not in the full amount that I was promised. Then I did looked up some information concerning the check that I received from the other creditor company that had sent me the check and people wrote experiences like, “the check that was sent to them was a fraudulent check and that the check was a way for them to collect personal information about a client.” FYI, I have not tried to deposit the check that I received. I will not take any chances.

I sent an e-mail to the original debt relief company that I had signed up with and I was told to call the 800 number that goes with the other debt relief company that had sent me the “refund” check that I had asked for from the original debt relief company that I had signed up with. I really thought that I would receive a full refund from the original debt relief place that I had canceled with. What are they trying to pull? Is this supposed to be some sort of punishment? Please advise.



Dear Kara,

Without knowing the specific entity names I can only give you my opinion based on the general experience of others.

READ  The Debt Relief Company Took Our Money And We Had to File Bankruptcy Anyway. - Marti

If this was a for-profit debt relief company then it is not unexpected to find the contract talks about deductions to the deposit amounts for administrative fees or other expenses unrelated to payments to creditors.

It could be that the company you received a check from was a third-party escrow company who was collecting funds, disbursing payments to the debt relief company, and who eventually sent you the check.

I’ve never heard of a third-party escrow company being part of some plan to collect personal information about a client. They would already have it.

I’m not surprised you did not receive a full refund but I’m afraid there isn’t enough information in your question to provide you with a more specific answer.


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About the author

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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