What can I do if a is credit counseling company has been falsely taking out money from my account?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What can I do if a is credit counseling company has been falsely taking out money from my account?
Credit counseling signed me up with their program to help me pay off my credit card loan. When they reached out to my creditor, the creditor denied their offer. Credit counseling failed to advise me of this and instead asked to increase my current monthly payment. It wasn’t until a year after that I was called by my creditor who notified me that credit counseling was denied the offer they had asked for. After I paid the total amount of my outstanding balance, credit counseling is still taking money out of my account. What should I do?
Asked on November 25, 2017 under Business Law, California
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can sue the credit counseling company for fraud.
Fraud is the intentional misrepresentation of a material fact made with knowledge of its falsity with the intent to induce your reliance upon which you justifiably relied to your detriment.
In other words, credit counseling did not disclose that your creditor had denied the offer, but increased your monthly payment and continued to take money out of your account.
You can recover punitive damages ( a substantial amount to punish the intentional wrongful acts committed by the credit counseling company) in your lawsuit for fraud.
You should also contact your bank to stop the automatic withdrawals from your account by the credit counseling company.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.