Question: How can I recover the remaining funds from a debt relief company that took advance fees but failed to negotiate with my creditors, especially when the company is currently facing a lawsuit for similar issues?
Answer: In a case where a company was hired to negotiate debt but failed to communicate with creditors, leading to a lawsuit for collecting advance fees, you should carefully examine the agreement signed with the company to determine if there was a breach of contract and what fees were agreed upon. You should also look out for any clauses specifying arbitration, mediation, choice of venue, and more. You may consider sending a formalized demand letter to the company, demanding them to enforce a (valid) contract.
If you'd like to book a call with an attorney to discuss your situation, or for help with contract review, contact Cape Law to see if services are offered in your jurisdiction.
Please note:This response is for general informational purposes only and should not be considered legal advice. For advice specific to your situation, consult a qualified attorney. We recommend consulting with a qualified attorney to address your specific legal concerns. The forum, its administrators, and contributors assume no responsibility for actions taken based on the information provided here. Laws and regulations are subject to change and may vary by location.
Related definitions:
Lawsuit Against a Business
Attorney Elizabeth Jennings