No. of Recommendations: 0
Hi John,

Just yesterday we got a letter from AmeriDebt. Understand that we called them and wrote them in March and formally cancelled. In April, we wrote in demanding a refund. In May, we sent a 20-some-page letter and copies of contracts and letters to the area BBBs and Attorneys General and the FTC with a copy to AmeriDebt. There is no possible way that they don't know we've dropped the program.

And now yesterday, the middle of June, we get this letter that says,

"In a recent review of your file, we have not received a payment from you for the month of May ... Since we are unaware of your plans at this time, we are, therefore, unable to advise your creditors accordingly."

This jives with what some of the CSRs have told me: AmeriDebt has not told them we dropped the program. The CCCs apparently don't know from who the payments are coming and don't care, as long as they keep coming at the agreed rate.

Now this is just a hunch, but I suspect that if you don't drop AmeriDebt, or tell your creditors that you're dropping, that you can keep making the same payments yourself (at least for a long time).

Since you're already pretty far along with AmeriDebt, another option is to call AmeriDebt and tell them that you have decided that $6 an account is too steep and to reduce it to (no more than) $10 per month (start with a lower figure) for the entire portfolio. At worst, they'll say no, but you can remind them that there are other options out there.

And that suggests your last option -- another Debt Management agency. One CSR recommended Genus. I personally did not sign with them but I did review their website and it seems to be an AmeriDebt without the 3rd party consolidation loan and without the high startup and inflated monthly fees. (In fact, Genus' web site says the services are free, but after being burned by AmeriDebt on the word "contribution," you can bet I'd look hard for any surprise provisions. Anyone?) The CCC CSR had nothing but praise about how well Genus works with the companies. I have read some critism of Genus on this site, but I think that most of it revolves around certain debts they couldn't handle and surprise notations made on credit reports (by the creditors, not by Genus, and I suspect that they've already made these notes on your credit report due to AmeriDebt).

Good luck and let us know what happens!

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