Legal Question in Business Law in Maryland

Consolidation Service

Dear Sirs,

I have a problem with a debt consolidation agency called NEWAY. I started the program on the 14th of September and sent a payment overnight via AIRBORNE that was received by their package receive company. The package was lost and therefore my money order was lost, they wanted me to put a stop payment on the money order and reissue one to them, when I attempted to do so the company that issues the money order states that it takes 30 days for a money order to be reissued. Neway will not pay my creditors untill they have payment in hand, my creditors are now calling me for payment. The money I would normally send my creditors was sent to Neway. My payments were current when I started with Neway and mailed them a money order.I feel the ball is in Neway's court, I sent the payment and it was signed for by their agency that receives payments. My question is what legal right do I have to make sure Neway settles with my creditors before they ruin my credit. My whole intention was to consolidate before my credit was ruined and am very afraid that this situation with Neway is going to do this.


Asked on 9/29/99, 6:08 pm

2 Answers from Attorneys
Robert Sher Wagshal and Sher

Re: Consolidation Service

Since, as you state in your query, a Neway representative signed for the package containing the money order, I think it's their responsibility to protect your credit, either by advancing the money needed to satisfy your current debts until the money order can be located or reissued, or by convincing your creditors to hold off and not penalize you. They're the ones at fault here, not you. If they won't act on your behalf, you may be able to file a complaint with the government agency that regulates this industry in the state where they are located, or with the state attorney general's office. If your credit rating suffers because of this, Neway may be liable for any damages you incur.

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Answered on 9/30/99, 3:00 pm
MYRON LEWIS MYRON LEWIS

Re: Consolidation Service

You have my deepest sympathy. Call Airborne and ask for your money back! Meanwhile, read your contract w/Neway. Does it cover this issue? Send a letter to the state authority who regulates Neway, and tell them about your problem. Good luck! Another option: Declare Bktcy! Then, you won't owe any money once you're done! Chapter 7?? Look into it!

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Answered on 10/01/99, 11:42 am


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