Legal Question in Credit and Debt Law in California

Back in 2007 I signed up with a debt managment company called United Financial Systems. Every month they withdrew money from my account and distributed the funds to my 4 credit cards. I recently have been trying to get in touch with them regarding my account but they have made it absolutely impossible. They never answer thier phone, return messages, or return my emails. I recently ran my credit report and have found that they have repeatedly sent my payments late for months. I now have 30 day lates on my report. Signing up with this company was supposed to help it not completely ruin it. I did some research online and have found that I am not the only one with this issue. United Financial Sytems have transferred my account to a completely different company without informing me of this at all. I feel like my hands are tied and that there isn't anything I can do. What are my rights as far as my situation goes?


Asked on 12/15/10, 1:13 pm

1 Answer from Attorneys
Asaph Abrams Law Office of Asaph Abrams

Often, my bankruptcy clients are erstwhile debt mgmt. co. clients.

Their end result through bankruptcy can be swift, conclusive elimination of debt, yet by having first traversed the private sector form of debt busting, that same end-result costs them thousands and thousands more. You would need to consult with counsel to determine whether bankruptcy is your present--albeit belated--best bet pursuant to these unfortunate circumstances. What is important to bear in mind is that bankruptcy is for millions of Americans the legal, sanctioned, legitimate, and superior method of managing debt, preventing loss and moving on; it's governed by Federal law under the auspices of the court. Your debt mgmt. co. isn't.

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Answered on 12/20/10, 1:33 pm


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