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“Dear Steve,
I am 62, on disability and enrolled with Consumer Law Group last July. Because of my declining health, I need the funds which currenty go to the Consumer Law Group, for medication. My question is, if I discontinue these payments, will my retirement pension, which I receive in addition to social security, be subject to garnishment? I retired from a financial institution, so this is not a government pension. Also, since I essentially have no assetts, can you suggest an affordable way to file chapter 7 bankruptcy? Thank you,
I have received collection/demand letters from collection agencies and fear what action(s) they may take. The Consumer Law group has now informed me that I almost have their fees paid and after another month or so, the funds will begin to build up in my account for the settlements. They debit my account for 4.18 per month and I need these funds for medication. I know my SS benefits cannot be garnished, but my pension from the bank (from which I retired) is my concern.
Dauna”
Dear Dauna,
So here is the big problem. To date it looks like you’ve paid ,450 in fees to the Consumer Law Group and all of that money has gone towards fees, not resolving your debt. If you had looked into bankruptcy last July and set off on that course you would have been able to file bankruptcy, protect your pension, eliminate your debt and had money left over.
I took a look at the Consumer Law Group site and found that it looks like it is not in compliance with many of the same issues that just got Allegro Law closed down by the Alabama Attorney General for similar debt settlement services and claims. If the Consumer Law Group is similarly closed down then you could be out all that you’ve paid to date.
Even at this point, if you continue on the debt settlement route, you’ve only paid their fees, not saved a dime towards any settlements yet, and you’ve not received any relief from collections or protection from being sued by creditors.
Before you send one more penny to anyone for debt help, please go meet with a local bankruptcy attorney and get specific answers to your pension questions by a licensed attorney in your state.
The American Bankruptcy Institute has an online directory of pro-bono bankruptcy attorneys.
I know emotionally you might not want to consider bankruptcy, but you need to embark on a solution that will not require any more payments for debt help or creditors so you can purchase the medication that you need.
The reality is that this decision has already been made for you by your medical needs. I’d ask the Consumer Law Group for a full refund of fees you’ve paid and they have not earned by providing you with any service apparently than collecting their fee. If they won’t give you one, let me know, I’ll tell you how to get one.
education loan
Comments
Hi, I actually work for The Consumer Law Group and I must say it is more than a little unsettling to see this story. My company actually does the job they say they’re going to, there are attorney fees, but the balance of our clients’ accounts does build up throughout the entire program. The first 2 payments paid on the program go directly to fees and then the rest of the fee ($2500, $3500, or $4500 altogether) is collected throughout the rest of the client’s up to 4 year program. There has to be some form of miscommunication here if this client was told that he won’t start accruing money in his settlement account until his fees are paid off, in fact, he should be receiving monthly statements reflecting the balance of his account, and if a client does wish to cancel they will be issued a refund. How much I may disagree with the practice of collecting the first 2 payments for fees it is much better than the practices of most attorneys out there whom collect their entire attorney fees up front. I also know for a fact that we will do everything in our power to accomodate a client, especially ones in a settlement program. I urge this individual to please call our office and discuss this matter with any of the representatives just make sure you explain the story, if needed, ask for the supervisor. Settlement does work, but if it turns out that your best move is truly bankruptcy we understand, we are simply here to help those that want to avoid that option and be as fair to the creditors as possible by paying back a portion of your debt, rather than the whole balance plus interest.