Legal Question in Consumer Law in Florida

Re: Contract disputes and the BBB

From your letter you indicated that you have already hired a lawyer to recover the money which you have paid to the debt-management company. These disputes are largely based on your contractual agreement with the Debt Management Company and what both parties have agreed to be obligated, and the time frames associated with performance. Unfortunately, fraud is prevalent in this industry and I have heard from a lot of consumers in similar situations.

My advice is, in order to try and prevent negative reports against your credit, write to your credit reporting agency and inform them of what has happened, and how you are currently in a dispute with the management company. You should also copy the reporting agencies with your attorney's letter.

If you have not heard from the Debt-Managment Company then your only alternative may be to sue. Agencies such as the BBB are private entities and cannot force anybody to pay money or settle a case. They are simply an entity which intervene to facilitate a settlement. But again, neither side is bound and their is no penalty for a company which refuses to settle, other than a negative reporting. Furthermore, in my experience, the only time the BBB issues a negative report is if the complaint is unresponded to by the company.

As to the attorney general's office, you would have to speak to them, but normally, the attorney general's office is unable to provide restitution to people who have already paid out money. Ordinarilly the attorney general assists in preventing further harm such as preventing companies from collecting or profiting on unpaid accounts which resulted from fraudulent business practices.

Best of luck, Randall L. Gilbert, Esq.