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Debt-management company allegedly misrepresented elderly client

No one wants to be trapped in an endless cycle of juggling overdue credit accounts and dodging calls from creditors. The desire to restore financial stability can make people susceptible to solicitation from fraudulent debt relief companies promising miracles. Instead of rushing into a potentially harmful situation, families in Appleton, Wisconsin, should take time to carefully review their options when resolving credit card debt disputes.

A 67-year-old woman discovered the perils of working with questionable debt relief companies, after she was reportedly contacted by an agency in May 2011. The woman, who may owe nearly $16,000, was allegedly charged a monthly fee and instructed to send $306 per month for a 10-month period. The woman claims the company never negotiated any settlements for her credit card debt.

The woman reportedly receives $763 in monthly Social Security income, funds that are legally protected from any creditor who has already issued a summons. Apparently, the woman is also unmarried and lacks employment due to her disability. If she collected other types of unprotected income, sources say the money would be fair game for lenders looking to get paid.

While working with the “debt relief agency,” the woman was told to cease all payments on her credit cards. Reports say attempts to contact the company by phone and email have gone unanswered. The company is facing scrutiny from the Federal Trade Commission for falsely representing its services.

The federal government reminds people to never trust “debt relief” companies that make you pay an up-front fee before getting results. A company that demands money for no results is not a debt relief company that should be trusted.

Source: WATE, “Debt relief company leaves Etowah grandmother even further in debt,” Don Dare, Feb. 13, 2013

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