Shore Legal Access

Seventy-six-year-old Donna T. knew she needed to do something about her bills, and fast. The bill collectors were calling her phone constantly; every day a stack of ominous letters arrived in the mail. Donna had been struggling with health issues for a while, and her hours at a local store had been cut. Her income was not keeping up with the bills and she felt buried in debt and shame.

One day Donna received a text message from a company saying they could help her solve her debt problems by getting a consolidation loan. She called the number and was told that she could get a loan to pay off her debts, have one monthly payment until the full amount was paid off, and the company would repair her credit score. She just needed to pay an upfront fee and start making monthly payments. Donna was elated to have this option available, but she didn’t know about the red flags – receiving a random e-mail from a company she didn’t know, and the up-front fee.

Soon after Donna started making payments, she received a court summons because her credit card company had filed a case against her to recover the funds she owed. She didn’t understand how that was possible because the debt consolidation company said they would get the debt paid off. Turns out the company didn’t even exist – she made several thousands of dollars in payments to someone living out of state who stole her money and never paid off her debt. When she went to court to explain that she thought she had the debt handled through the debt consolidation company, she found out that the court would still have to issue a judgment against her. Her only recourse was to report the company and the person she worked with to the Maryland Attorney General’s Consumer Protection Division.

Donna’s plight is increasingly common and can be avoided. Receiving text messages, e-mail, and phone calls from a company you don’t recognize is a red flag. If you or someone you know is dealing with mounting, unmanageable debt and legal liability, there are steps you can take that don’t involve debt consolidation, including contacting Shore Legal Access for a financial legal consultation by calling 410-690-8128 or filling out an online intake at: shorelegal.org. You don’t have to go it alone!