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I just wanted to give everyone here a heads-up about the Class Action Lawsuit settlement. CareOne and it's affiliates have settled (for $4million) a lawsuit against them charging them with Fraud and Racketeering, among other things.
I've had a mixed experience personally with CareOne/AFS since starting my debt management program with them in 2003. I thought the problems I had with them were unique to me...late fees from creditors b/c they held onto my payments w/o notifying me, the odd "member services" fees I was charged for months, and the "voluntary contribution" monthly fee I am charged every month in spite of being promised that I would receive debt-relief counseling and support for "free".
I did however pay off several credit cards in the process.
Thank you for sharing this. Your input was informative and helpful.
Good afternoon and thanks for posting to the community.
We are researching your post and will respond shortly.
As per the above response by Coach Tammy, I am curious as to what the followup respone is on this matter.
I have researched this with our legal department and this is what they told me. Only one party to the lawsuit, American Financial Solutions (AFS), has entered into a settlement. AFS is an independent credit counseling agency. CareOne Services, Inc., and its affiliates have not settled the lawsuit. To the contrary, they have been vigorously defending it because they believe they have done nothing wrong. I hope this helps clear things up.
Thank you for your patience,
Obviously, this is concerning to me, but I have not yet been able to find any information via basic news and google searches.
Can you please provide some more information and links/citations to your source for information concerning this settlement.
Where did you hear about it?
I am running into a lot of problems, 4 years into the program and only a few cards have been paid. (2) MIND YOU I have been apart of the program since 2008 and renegotiated in 2010. They take a monthly service fee of 50$ to HOLD MY MONEY and then another 26$ to pay Persels (CareOne) I am so upset with this company. where did 3 years of paying 252.00 a month and 166.00 for another 2 years go? Certainly not to just two accounts totaling 500 or so dollars MIND YOU, my husband and I are only in the hole for 12,000.00. You do the math. How do I get on board with this class action lawsuit. I feel RIPPED OFF.
Well, I too have mixed feelings but willing to give a little more time... maybe a couple more months, but if the continued "we have made offers" but nothing on the website updated, or the "theres not enough money to do anything" when they sent offers out a week ago and no change in the account since then... Long story short... they got me for a couple more months but if no significant action happens, I will need to investigate other options. Heck, from what I'm learning, bankruptcy is not all that bad if you meet certain criteria. Keep your car / home / personal property... After all, my credit is gone for a few years anyways, why not do a complete fresh start. With the current status of the economy, a bankruptcy is not the end of the world.
My husband and I are in the same boat. We have paid over $7,200 to CareOne & Persels over the past 3 years and they have only paid off $1,055 of our bills. Where the heck did the other money go? It certainly isnt in an escrow account, because they are reporting that as having $58. What is the point of paying all these fees if our bills arent getting paid? Yesterday we got 2 judgements in the mail. Apparently we were sued by 2 of the companies on the program and no one ever did anything. No calls from our "lawyer" no advice no nothing. So much for CareOne helping you repair your credit, now we have 2 judgements against us for the next 7 years. Thanks for nothing CareOne.
Thank you for sharing your concerns regarding Persels and Associates and the Debt Settlement Plan. I wanted to let you know that your concerns have been received and escalated for further assistance.
More and more I read makes me think that giving them a couple more months might be all they have to prove they are doing something. Sure there are some success stories, but seems the larger in debt you are, the more bankruptcy might be the way to go. But, I don't have much to loose if I give them till after my court date. If they can settle and avoid a judgment, I will stay but if not, bankruptcy will be the way I go.
So... good luck care one and do hope you can settle my priority account... To date, from what I can see on-line, not one offer has been made to them, which is disappointing to say the least (and yes, there are funds in the escrow account so I would think some type of arrangement could be worked out).
the only legal representation you get is a cease and desist letter sent to collection agencies. the bottom line is you will get sued. you will lose. if creditors choose to file a lawsuit they will. now creditors are suing just to get a judgment. the amount of debt is not a factor anymore. they will take you to court for any amount owed. you will be publicy embarassed and your family members and so called friends will access to public records.
Is it better just do bankruptcy then? At least that way it can not be constant appearances in court and if all my reading is correct, the max they can take from your paycheck is 25% of net. Sure the bankruptcy is public records too but between the two, better get it out of the way vs every couple months back to court.
You weren't smart enough to stop paying them. SHAME ON YOU THEN. I see my bills being payed.
if had it to do over again, i would have at least looked into seeing if i was qualified for bankruptcy.