Legal Question in Consumer Law in Virginia

Business service promised
I am working with this company that is supposed to be talking with my debt collectors to settle my debts. I had the understanding that after initial payment, they would start to contact the collectors. But from the number of calls and letters still being received, it started to look like they are waiting to get the full amount of their fees for 3 months before they start. As a result of having to pay them, I have had to stop paying other companies. They had me send out a letter that basically stated that I had dug myself in a hole and asking my collectors to stop calling me but to send letters. ( I had the impression they would have mentioned that they were going to be helping me and that I would eventually be able to make payments, but the letter did not say this).
This month I received a warrant of debt from one of the collectors. I passed this information on to the company that I'm paying to help me. I spoke to my representative yesterday and I was told that I should go into my 401K or have a garage sale in order to have money to go to court with and work out my own payment plan with the company issuing the warrant.
My question is can this settlement company do this or should I not stay in business with them?

Asked on 8/30/07, 7:50 pm

2 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: Business service promised

It would seem that the only thing that

that this so-called debt settlement company is interested in settling with respect to your case, is settling their advance fees from your straitened purse straight into their quite capacious pockets---and as quickly as they can carry it off. And don't look for things to change anytime soon.

Answered on 8/30/07, 8:05 pm

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