Q: What to do if a debt resolution company overcharges fees in Georgia?
I used a debt resolution company for the past 13 months, and they have been taking 54.5% of my monthly payments for "fees." The state of Georgia limits these fees to 7.5% upfront per monthly payment. I contacted them for an explanation, and they refused to provide one in writing. Despite the contract stating a maximum of 27% fees, they exceeded this amount. Additionally, they provided inaccurate information about payments to my accounts. What should I do about this situation, and how can I prevent others from being taken advantage of by this company?
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A:
If you believe the debt resolution company has overcharged you, your first step should be to gather all documents related to the contract, including payment receipts and communication records. Since Georgia law limits fees to 7.5% upfront and 27% total, you can file a complaint with the Georgia Department of Law's Consumer Protection Division. They can help you determine if the company has violated state laws and may intervene on your behalf.
In addition, contact the company in writing and clearly state that their fees exceed the legal limits, referencing the contract and Georgia’s fee regulations. If they refuse to address your concerns, you could also consider filing a complaint with the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB). These agencies investigate unfair business practices and may take action if the company is found to be in violation.
To protect others from similar issues, consider reporting your experience online, sharing details about the company's actions on consumer review sites and forums. You could also inform friends or family who might be seeking debt relief about the company’s practices. Taking these steps can not only help recover your overcharged fees but also warn others who might be at risk.
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