Legal Question in Credit and Debt Law in Pennsylvania

I had a Capital One credit card. I had $6,000 charged on it. My wife asked to use it and when I got it back there was $20,000 charged on it. I went to Alleviate Debt Solutions. They told me not to talk to Capital One, they would take care of everything. I kept getting late notices from Capital One. When I told Alleviate about this, they said don’t worry about it you are protected by us to not get any late charges. Well, it turned out I owed about $23,000 when it was all said and done.

For years I paid in and heard nothing from Alleviate. I kept asking them about my account by email and phone. I never heard anything back for years. I finally wrote a letter to the Attorney General's Office. Now I’m getting responses from Alleviate.

I assumed this was a debt settlement company. In February of 2021 I got a phone call from Alleviate. I had been paying in for several years now and was told I had accumulated over $11,000. I asked them what I needed to pay this off and they said another $11,000. Which would make it the full amount. I was expecting a debt solution company to get Capital One to settle for half or 1/3.

Is this normal for a debt solution company. Can I get help else ware?

Asked on 2/15/21, 8:06 am

2 Answers from Attorneys

Drew Quinones Drew Quinones, P.C.

Call my office to discuss your case.


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Answered on 2/15/21, 8:14 am
Matthew Nahrgang Nahrgang & Associates, P.C.

Debt settlement companies offer several options for resolving debt: 1) negotiate a payment plan 2) negotiate a payoff 3) provide a new loan in combination with the other options. It is common for such companies to require monthly payments from the consumer which are automatically deducted from a bank account. However, there is never a guarantee of a particular outcome and it is possible that no settlement may be reached. I have had clients who were under such programs only to be sued by the creditor because no settlement was reached, all while the client had been paying into the plan.

You have several options remaining: 1) request a refund from Alleviate 2) contact Capitol One and offer to settle either in a lump sum or in monthly payments 3) seek a non profit credit counseling agency who is more likely to act in your best interest in attempting the same options 4) hire an attorney who will also act in your best interest to attempt a result satisfactory to you.

I trust this has been helpful but feel free to call or email me on a free initial basis. Kindly reply to me directly as I don’t get notified of responses on guru.

Matthew R. Nahrgang, Esquire

35 Evansburg Road, Ste 400

Collegeville, PA 19426

(610) 489-3041 o

(610) 489-3042 fax

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Answered on 2/15/21, 10:08 am

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