Legal Question in Credit and Debt Law in Minnesota
Damage to my good credit....
enrolled in debt-mgmt program in october. mgmt-plan supposed to handle payment to all creditors and I send them a monthly fee. similar to consumer credit counseling.
Since March, two of the creditors claiming payments never received from the debt-mgmt firm!
One creditor calling my home and work DAILY demanding pmt.
My credit score now severely damaged.
I have been denied credit AND could not apply for new job as 1 requirement was good credit.
Pls note *not a single payment has been missed on my part - they have been PERFECT*.
Debt-mgmt firm has not helped despite over a dozen calls (isn't resolving things like this what I hired them for?).
I am being harassed constantly, serious emotional distress, etc. I think I have a case against either debt-mgmt firm or the creditors?
Someone has screwed up severely, my credit is a wreck, I am seriously stressed, denied credit I needed for business, etc! I did everything the RIGHT way... What can I do?
1 Answer from Attorneys
Re: Damage to my good credit....
Unfortunately, you did not do everything right, if you went to one of the 'for-profit' debt management firms. My clients' experience is that the purpose of the firm is to miss payments, so that the creditor will sue you, make a mistake and then you (not them) get the case dismissed. In the interim they have all of your money. In about six months they shut down, and reopen under a different name. Many have been sued and/or banned in other states.
Go to a real credit counseling firm in your town. They are generally not-for-profit, and they will help you reestablish yourself. The credit counselor will advise you if your situation can be salvaged.
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