Legal Question in Civil Litigation in California
I have to sign this contract what does it mean?
I p ayed this company money for debt consolidation and decided not to use their service now they are making me sign this contract in order to get my money back. Is it legit and what does it mean for me?
The undersigned--name removed---name removed--(--name removed--), once the agreed upon payment of Two Hundred Ninety Nine and No Cents ($299) is received, hereby releases Credit Exchange Corp. (''CEC''), its shareholders, directors, officers, employees, and agents, from any and all claims of any nature whatsoever arising out of CEC's referral of--name removed--for credit counseling services. CEC also hereby releases--name removed--from any and all claims of any nature whatsoever arising out of CEC�s referral of--name removed--for credit counseling services.
--name removed---name removed--agrees that this release is the compromise of a disputed claim and that the payment is not an admission of liability on the part of the parties hereby released, by whom liability is expressly denied.
--name removed--further agrees not to file any complaint with the California Attorney General's Office, any other public agency, and any office of the Better Business Bureau.
3 Answers from Attorneys
Re: I have to sign this contract what does it mean?
The contract you are being asked to sign appears be a release of liability. Releases are quite commonly used when parties settle disputes and when money is paid by one party to another in such settlement. I would need to review the actual document to order to properly assess the release. Please contact me at (248) 305-5840 with any further questions.
Re: I have to sign this contract what does it mean?
It means that, after you get your money, you can't sue the company or whoever referred you to them over the agreement per which you paid the $299, and that you can't file a complaint with the state or the BBB against them. If you were thinking of suing for fraud after you got your money back (or even if you weren't), signing this document will bar such a suit. I question the legality of the ban on bringing official complaints, but I have not researched this issue and it may be perfectly legal.
Re: I have to sign this contract what does it mean?
The long and short is that the debt consolidation company doesn�t want to be bothered with any lawsuits after they pay you your $299.00. This agreement is a protective measure for this company since we live in a litigious society. Therefore, they want you to sign a release that will bar said-above lawsuits. However, I do not believe that they can legally bar you from reporting any incidents of fraud, etc to a government agency, but at the end of the day it doesn�t really matter if you�re happy with the $299.00.
Good luck. If you need any further assistance, please do not hesitate to contact me at 818.943.0462.
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