In early 2006, I signed up with a company to consolidate my credit card debt. The full amount was around $12,000, and that’s spread out over six cards.
This year I started making a good bit more money, so, in May, I called the debt management company and asked if they’d take an EXTRA payment from me that month, as soon as possible, in order to knock off most of the debt on two credit cards.
I thought I was clear and repetitive, but somehow they managed to ONLY pay those two cards that month of May and none of the others.
Now Bank of America has told me that this has been negatively reported to the credit bureau.
The debt management company, who made the error, is telling me, in so many words, that it’s my fault and that there’s nothing they can do. They tell me to call Bank of America, while Bank of America just shrugs and says, "We just report what comes in and what doesn’t."
I asked for a call back from a supervisor at the debt management company, but there’s been none since I started asking last week.
I threatened to sue them, and they told me, in so many words, that that is not an option.
Can someone make a mistake that injures your credit rating and not be held accountable? I never missed a payment until now.
There responsible and they better fix that mess they made with Bank of America for you. There is what’s called the New Uniform Debt – Managment Services Act. Basically what has happened to you has happened to many other people and worse. You can report them to the Federal Trade Commission to begin an investigation. If they find they committed any wrong the FTC will take care of it for you. For the record next time you want to change the terms of your agreement with anybody make sure to do it in writing and send it certified mail. They can always say they never spoke to you. You can definitely take them to court but try the FTC first.
most likely part of your contract had an arbitration agreement that said you agreed not to sue them, but if you had a dispute, you would arbitrate. so, be prepared to fly to the city that the loan company’s corporate office is in, pay $2,000-$3,000 for you share of the arbitration fee, tell the arbitrator your side of the story, listen to the loan company tell their side, and see what the arbitrator decides (which is unappealable and legally binding). but keep in mind, you are the out of towner and the arbitrator pays the bills by arbitrating for the loan company, so whose side do you think he or she is on. sorry but your hosed
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There responsible and they better fix that mess they made with Bank of America for you. There is what’s called the New Uniform Debt – Managment Services Act. Basically what has happened to you has happened to many other people and worse. You can report them to the Federal Trade Commission to begin an investigation. If they find they committed any wrong the FTC will take care of it for you. For the record next time you want to change the terms of your agreement with anybody make sure to do it in writing and send it certified mail. They can always say they never spoke to you. You can definitely take them to court but try the FTC first.
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Your relationship with the debt management company is controlled by the contract that you signed with them. I would have to see the contract to tell you more, but most of these contracts have an arbitration provision. This means that when you signed the contract you likely agreed that you would not sue them, but would instead submit the dispute to arbitration. The bigger issue here is one of damages. Until you have been denied credit due to the late payment being reported on your credit report, you have limited damages to prove up in a lawsuit. Adam Fullman
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