How doI get back my money from a debt settlement companythat got no resultsafter 6 months?

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How doI get back my money from a debt settlement companythat got no resultsafter 6 months?

I signed a contract with a debt settlement company and paid my monthly amount for them to use to work with my creditors for 5 months, including an extra amount I added when I had extra money. I cancelled my account as they had done nothing for me (no settlement offers, no tangible work with creditors proven) and now they are refunding me only $1500 of the $3668 that I paid them. How do I get all my money back since they did nothing?

Asked on March 28, 2011 under General Practice, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You need first and foremost to look at whatever agreement you had with them. The question is:

1) What work were they obligated or committed to do?

2) What was the money you paid them devoted or committed to--e.g. what portion was "your" money that they were holding to possibly later make an offer, and what portion is "their" money in the sense that it's fees or costs payable to them?

3) What does the agreement say about your right to cancel, grounds for cancellation, and how you have to cancel? Also about whether any part of the fees paid are refundable?

Basically, if there is an agreement, you can enforce its terms. That includes that if work had to be done, not having to pay for work not done. But agreements can be very one sided and still be legal...so if the agreement did not commit them to doing any work by a given or defined date and/or makes part of your payments nonfundable fees, they may be entitled to keep what they did. So first thing, look at and understand your rights under the agreement.


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