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CalAttorney2, Attorney
Category: Legal
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Experience:  Civil litigation attorney for individuals and businesses.
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My debt settlement company owes me a sum of about $2713.8 because

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My debt settlement company owes me a sum of about $2713.8 because they failed to negotiate a settlement on one of my student loan accounts. And ihad to pay the full amount. In the contract that I have with this company it states that if (settlement company) does not successfully negotiate a settlement which is at least 15 percent of the original enrolled debt. They will provide me with a refund of 15 percent of the original amount or any reduced amount if less than 15 percent. I finished paying off the Loan last fall and contacted my settlement company and asked them for the refund. They told me I was not eligible because I had missed a payment in 2011 and to qualify for the refund I couldn't have missed a payment. But the contract states that in order to qualify I must be current in my budget of $1000 per month and current of all customer fees which is $75 per month. I notified the company well in advance that I wasn't going to be making the $1000 monthly payment for that particular 2011 date and that was the only month i didnt make a payment. and that was because the creditor was garnishing my parents wages and i had to reimburse them. I authorized them to take the customer fee out of my savings so that wasn't missed for the month and 5 months prior to this time I authorized a payment of $5000for one month so I had already exceeded my savings plan. I have contacted my debt settlement company numerous times about this and I have not been able to get an explanation. They always tell me there is a certain person whom I must speak with about this and every time they redirect my call to this person I get voicemail and I have left messages with my phone number several times and have not heard back. I feel that I am entitled to this refund and they are contractually obligated to pay it, and they are avoiding me. What are the appropriate steps I should take in dealing with this? I have copies of the contract and payment history and proof of payment on the loan.

William B. Esq. :

Dear Customer, thank you for choosing Just Answer.

William B. Esq. :

If you believe that the debt settlement company has breached its contract with you and is ignoring its obligations, you have the right to file a breach of contract action against them. In Michigan, you may file this action in small claims court (anything less than $5,000.00), and do so effectively without the need for an attorney:

William B. Esq. :

It may be cost effective to first write the company a "demand letter" in which you identify your claim and your intent to pursue your rights in court. Some attorneys like to attach a copy of a completed complaint that they intend to file if the defendant does not respond within a certain period of time (2 weeks or so in most cases).

William B. Esq. :

I am going to move your question to our other format to ensure that you are able to review my answer, and so that you can ask any follow up questions you may have. The forum is currently being updated and I want to ensure that you can see my response.

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