You’ve heard of them — companies that say they can get you out from under a mountain of debt. But one woman says the company she called caused more harm than good. It’s tonight’s Help Me Howard With Patrick Fraser.
In a house of artists, Ramon is the painter
Karen Dematas: “Yes, every piece has a meaning. He does it with feelings. This photo here is in memory of all the Cubans who have lost their lives trying to come here.”
Karen loves to use resin to create pieces.
Karen Dematas: “Epoxy resin. I do coasters. I do trays.”
Two artists. It reminds me of the line about starving artists because they don’t make a lot of money.
Karen Dematas: “No, it’s just a hobby. It doesn’t really. It doesn’t pay the bills. It doesn’t.”
After she retired, Karen used her credit cards to pay unexpected bills. When the total reached 11,000 dollars, she needed help.
Karen Dematas: “I’ve heard about debt relief companies, and I just thought that it was good.”
Karen spoke to CDS debt relief who said ‘Stop paying your credit card bills’ and pay them 199 dollars a month.
Karen Dematas: “They would bring down what I owed and I would be debt-free within a year and a year and a half. That’s what they told me.”
Karen says she was told the debt relief company would get the $11,000 credit card bill reduced and then use her $199 a month to pay off that smaller amount. She agreed then her credit card companies started calling.
Karen Dematas: “We haven’t received any payment. Same as a credit card. You’re behind your payments.”
For 6 months Karen paid the debt relief company 199 dollars a month and each month she would call to find out what was going on.
Karen Dematas: “Every time I would call it was ‘We’re still working on getting your card amounts lowered.'”
Finally, after 6 months she gave up. Tried to cancel her contract and get back the nearly $1,200 she had paid the debt relief company.
Karen Dematas: “Oh, leave a message. We return your call. Never happen.”
She still owes the credit card bill plus interest and she lost her $1,200 she paid the debt relief company. All because she trusted them.
Karen Dematas: “That has got me in a lot of trouble”
Patrick Fraser: Trusting?
Karen Dematas: “Yes, yes, yes, that’s right, it has”
Well Howard, is Karen entitled to get the money back that she paid plus the credit card interest that has accumulated?
Howard Finkelstein, 7News legal expert: “No they are not responsible for the credit card interest but they have to return her $1,200 because they didn’t do anything. But here is the problem with these debt relief companies—many go out of business and change the name—if you sue and win you can’t collect. Finally, if you can’t pay your credit card bill you can do the same thing a debt relief company can do on your own.”
Trying to get anywhere with the debt relief company was like trying to grab a handful of smoke. A dozen times they told me the owner Kevin Lugo would call me back and never did. We went to their West Palm Beach office. CDs debt relief has gone out of business. A second company registered to Lugo is closed. A third debt relief office has a disability center sign outside
At the Better Business Bureaus website the companies get an F with nearly two dozen people saying the debt relief people did the same thing to them that they did to Karen: took their money and didn’t pay off any debt.
Patrick Fraser: “I tried. I couldn’t get them to give the money back.”
Karen Dematas: “It’s sad, but I have understand.”
Karen has no idea what she is going to do about her credit card debt but if the debt relief company people had the guts to face her, she has some words for them.
Karen Dematas: “Karma’s a bitch. Excuse the expression, but it will come back to you some time. It’ll come back.”
They take advantage of the people who need help the most. Now Howard mentioned reducing the debt yourself. Talk to the credit card companies to try and get the interest and penalties reduced. If you can pay a portion, offer them that. Some cards will forgive a good percentage of the bill to get that lump sum.
It’s worth a try.
Trusting and being trashed. Need relief? Contact us. You won’t be indebted to us cause we are truly free. With this Help Me Howard, I’m Patrick Fraser.
CONTACT HELP ME HOWARD:
Email: helpmehoward@wsvn.com
Reporter: Patrick Fraser at pfraser@wsvn.com
Miami-Dade: 305-953-WSVN
Broward: 954-761-WSVN
Copyright 2024 Sunbeam Television Corp. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.