Credit Card Consolidation
Credit Card Consolidation
Use care when choosing debt consolidation firm
HOWARD AIN | HEY HOWARD
Credit card debt jumped for the seventh consecutive month in May, suggesting Americans are using their cards to finance more purchases as interest rates rise, according to the Federal Reserve.
Unfortunately, some people have so much credit card debt they have a hard time paying it off and look for ways to get out from under the debt without filing bankruptcy.
That's the problem facing Chris Hoerlein of Camp Washington, who, three years ago, contracted with a debt consolidation company.
"They would collect money from you and they would put it into a settlement account where they would deal with all of the debtors," Hoerlein said he was promised.
He began sending his money to the Texas company, Risk Management Partners, and it was supposed to deal with his six creditors.
"Over the last three years they had collected $15,600 from me to settle my debts," he said. Hoerlein said the company, also calling itself Miracle Management Group, did reach a settlement with one of his creditors -- but only one.
"After their fees, and the account they had settled, they had $11,400 of mine still left in the settlement account," Hoerlein said. But, the company started disappearing earlier this year. "At the beginning of June, all of a sudden their Web site shut down. In May, all their phone numbers had quit working," he said.
On June 9, Hoerlein wrote to the company to cancel his contract with them and asked for his money back. Although someone from the firm signed that they received the letter, Hoerlein has yet to receive any of his money.
I checked and learned the Arizona State Banking Department sued Risk Management Partners and Miracle Management Group for operating without a state license. The company was ordered to stop doing business in Arizona last year and ordered to pay more than $96,000 to out-of-state victims.
"Nobody ever knew anything about that from outside Arizona," Hoerlein said. "I had never heard anything about it, or even realized there was any trouble."
Hoerlein has sent copies of his complaint to authorities in Arizona and Nevada, where the company was also operating. He said he needs that $11,400 in order to pay bill collectors who have now started calling him. "They're leaving messages day and night and they're not very friendly, frankly," he said.
Bottom line, there are many of these debt consolidation and management companies which claim they can help you settle your outstanding debts, but you must be very careful before signing up with them.
First, check them out with the Better Business Bureau and the state banking department to make sure they are in good standing and properly licensed. Remember, some of these companies are non-profit and don't require you do pay any money --which makes sense to me because this is the time when people can least afford to pay for anything else.
Copyright © 1995-2006 Cincinnati.Com >> Community Press & Recorder >> Use of this site signifies your agreement to the Terms of Service and Privacy Policy, updated June 7, 2005.
posted by News at 3:43 AM
Use care when choosing debt consolidation firm
HOWARD AIN | HEY HOWARD
Credit card debt jumped for the seventh consecutive month in May, suggesting Americans are using their cards to finance more purchases as interest rates rise, according to the Federal Reserve.
Unfortunately, some people have so much credit card debt they have a hard time paying it off and look for ways to get out from under the debt without filing bankruptcy.
That's the problem facing Chris Hoerlein of Camp Washington, who, three years ago, contracted with a debt consolidation company.
"They would collect money from you and they would put it into a settlement account where they would deal with all of the debtors," Hoerlein said he was promised.
He began sending his money to the Texas company, Risk Management Partners, and it was supposed to deal with his six creditors.
"Over the last three years they had collected $15,600 from me to settle my debts," he said. Hoerlein said the company, also calling itself Miracle Management Group, did reach a settlement with one of his creditors -- but only one.
"After their fees, and the account they had settled, they had $11,400 of mine still left in the settlement account," Hoerlein said. But, the company started disappearing earlier this year. "At the beginning of June, all of a sudden their Web site shut down. In May, all their phone numbers had quit working," he said.
On June 9, Hoerlein wrote to the company to cancel his contract with them and asked for his money back. Although someone from the firm signed that they received the letter, Hoerlein has yet to receive any of his money.
I checked and learned the Arizona State Banking Department sued Risk Management Partners and Miracle Management Group for operating without a state license. The company was ordered to stop doing business in Arizona last year and ordered to pay more than $96,000 to out-of-state victims.
"Nobody ever knew anything about that from outside Arizona," Hoerlein said. "I had never heard anything about it, or even realized there was any trouble."
Hoerlein has sent copies of his complaint to authorities in Arizona and Nevada, where the company was also operating. He said he needs that $11,400 in order to pay bill collectors who have now started calling him. "They're leaving messages day and night and they're not very friendly, frankly," he said.
Bottom line, there are many of these debt consolidation and management companies which claim they can help you settle your outstanding debts, but you must be very careful before signing up with them.
First, check them out with the Better Business Bureau and the state banking department to make sure they are in good standing and properly licensed. Remember, some of these companies are non-profit and don't require you do pay any money --which makes sense to me because this is the time when people can least afford to pay for anything else.
Copyright © 1995-2006 Cincinnati.Com >> Community Press & Recorder >> Use of this site signifies your agreement to the Terms of Service and Privacy Policy, updated June 7, 2005.
posted by News at 3:43 AM
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