AmeriDebt pockets first payment!
Written: Jun 21 '00 (Updated Jun 21 '00)
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Product Rating:
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Pros: None
Cons: Took our money and didn't pay anyone, broken promises, surprise fees, no cost savings, no refund, no communications
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| topolski's Full Review: AmeriDebt |
We signed up with AmeriDebt, thinking our first payment was going to help lower our balances. Instead, AmeriDebt pocketed all of that money for themselves!
We signed up in February for payments starting in March. We make our first payment. A few weeks later, curious about how our payment was being split amongst the creditors, we call and ask for a breakdown. We get the breakdown via fax and it indicates the promised reduced payments and interest rates. We're comfortable, for the moment, that our bills are being paid and life is a little easier. But something is wrong: the total being paid to the creditors is quite a bit lower than we sent.
Turns out that little surprise was a hidden $6 per account fee that they failed to tell us about. 7 debts in the program times $6 per account equals $42. Almost 9% of our monthly payment went to fees. When you add that 9% to the average reduced APR we are paying, we are statistically no better off going through AmeriDebt.
But that's not all. When we called and found that out, we also found out that NONE of that first payment actually went to creditors. AmeriDebt pocketed that for themselves! Upset, we questioned this, they said it was a voluntary contribution and it could not be refunded.
Their material says that no contribution is required, but they literally took ours, and never told us!
By now, it's been a month and we either make a payment or go off the program. Desperate to see our creditors get some money (since they were never paid in March), we sent in another payment.
Now, after two payments, some of our creditors are seeing their first money in a long time -- turns out they never negotiated with several of them. That breakdown form that they faxed to us a month ago indicated rates and amounts that were not agreed to. We ended up sending more money to one creditor and settling the entire balance with another.
AmeriDebt was no help.
Finally, after 10 weeks, we've pulled the plug on them and went back on our own.
We wrote demanding a refund of our first payment as we never agreed to make any contribution to AmeriDebt. That letter not only did not result in a refund, but it was never answered. A second letter was additionally addressed to six area BBBs, Attorneys General, the FTC and other consumer authorities. Although more than three weeks have passed, AmeriDebt has not responded to that communication, either. Next steps are being considered.
In fighting this, we did some research and have learned that AmeriDebt, a non-profit organization, is the 2nd most inquired-about organization at the Washington DC Better Business Bureau (BBB) and a source of numerous complaints. After being on AmeriDebt for 6 months, they try to get you a consolidation loan from Infinity Resources. Infinity Resources is the 5th most-inquired about entity at the DC BBB. (Source: D.C. Sues Credit Assistance Company, Failure to Keep Promises Alleged by By Jamie Stockwell, Washington Post Staff Writer; Wednesday, August 11, 1999; Page E01).
While Debt Counseling and Consolidation is a legitimate and necessary service, it is too bad that AmeriDebt comes in to take advantage of those least financially able to defend themselves. Fortunately, I've learned that there are other legitimate services that are free to the consumer and very well respected. Try one of them. Should I need such a service again, I will try Genus or CCCS next.
Currently, we are back to paying our own bills. A fortunate change in our financial situation has made it possible to catch up and pay them off in a reasonable time.
AmeriDebt is bad news. Stay away.
Recommended:
No
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Epinions.com ID:
topolski
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Member: Robert Topolski
Location: Hillsboro, OR
Reviews written: 23
Trusted by: 12 members
About Me:
I sing baritone in a barbershop quartet!
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