A New Horizon Credit Counseling Services Broke promises on ability to quit program anytime to return $361.00 fees & didn't set up contracts with creditors Fake program I did all the work Deerfield Beach Florida
In good faith, I set up a debt reduction plan with A New Horizon. The initial cost was $361.00 to be refunded when I quit the program. This money was held by them until I gave them a second payment of $361 for my bills. I was also promised I could quit the program at any time.
Well, I gave A New Horizon a list of all my creditors and accompanying details. They sent me documents to fill out and send to each creditor. They told me they had set up a plan to eliminate late fees etc.. and followed up on the agreements.
Well, as my bills kept coming, the late fees kept going up and up. A New Horizon paid the bills late. The amounts of my debts actually increased in their hands. They did negotiate a few of the interest rates, but not all.
I finally got fed up with them and starting reducing my debt myself by paying additional payments. That is how I reduced my debt, by myself, not with their help. They charged me $6/month/account. But they did not earn the money, I did all the work to negotiate problems and to pay my bills.
They are unethical, fraudulent, and a rip-off!
Tanya
Clinton, Indiana
U.S.A.
2 Updates & Rebuttals
Kimberly
Wilmington,North Carolina,
U.S.A.
Concur with initial writer's comments
#3Consumer Comment
Sun, July 30, 2006
I was a client of ANH for several years. I joined the program to take advantage of the ability to have my interest rates reduced. When I joined circa '02, I was required to make a $300 "donation"; in addition to the $6 monthly processing fees. One particularly problem I encountered was the routine change over of my "account specialist". The result was a significant loss of continuity.
Additionally, if one is joining the program to have their interest rates reduced, I don't know why they should be penalized and have a black mark on their credit reports for being under a DMP. This adversely impacts the participant's credit and is counter productive as those individuals who are taking responsibility and getting their affairs in order, suffer by having their credit damaged by these entries.
My accounts were paid off and I subsequently contacted ANH again regarding re=establishing a plan for a previous account, after I made a substantial payment on my own. They negotiated a new payment and required me to "re-activate" my account. Even though I had been on the program over four years and was only off one month. I was able to negotiate a lower re-activation fee. I was then contacted to "welcome" me to the program. Not needing to be "welcomed" as I had been familiar with the organization for over four years, I ignored this offer. Come to find out, this call was not so much to welcome me but to cover them with a bunch of policies and warnings and the like, as well as having to go over income and expense information with them, after what I thought was my reactivation, as they had processed my payment for said reactivation.
If you are going to welcome a client, that is one thing, but don't call it welcoming, when it is a call to continue processing your account. Call it what it is.
I was told ANH would be sending forms I needed to sign. This took a week. In the meantime, the creditor charged me a late payment, even though I was technically not on the DMP at the time and submitted my payment on time.
Additionally, ANH had sent a letter to the creditor, via email I believe, and the creditor did not receive it. So when I called them to get my new payment amount, I was told I was still on the program. I explained I was off it for a month. I contacted ANH who informed me they sent a letter to the creditor informing them of my termination with the program. - This termination was at MY request. That was when I first learned of this letter procedure. As a result, the creditor had sent my statement out, with the old DMP amount. They would not modify it, even though it was not my doing for this situation. The payment difference was $140, not a few dollars. I was told I could submit the re-negotiated payment amount of $25, which I immediately did. My next statement shows a late fee of $35 - as well as being told I have not paid my minimum payment.
It was just a complete debacle and indicative of the half baked efforts and lack of follow through at this organization. After being associated with them for over four years, I have seen enough to have an informed opinion.
Unfortunately I was not one of those that got in later on and had to "donate" $300 - not submit the funds to be used toward my credit card payments.
I was not aware until I read this particularly complaint, that this was their practice now. Par for the course.
One time I was even the recipient of another client's statement. Which inadvertently was mailed with my statement. Yes, mistakes happen but when you are dealing with someone's financial information, that is simply not an acceptable business practice, human error or not.
Buyer beware is all I can say. Personally, after my experiences with ANH, I would recomend someone in need of debt consolidation services, go elsewhere.
Oh, I WAS contacted by ANH and they returned my re-activation fee, after I decided due to the numerous ANH errors and omissions with this particular account, to pay off the account through my own means and not with ANH.
Mj
Ny,New York,
U.S.A.
That Is NOT TRUE, This company has helped me tremedously.
#3Consumer Comment
Fri, February 06, 2004
That letter is very untrue. This company has helped me tremedously. They tell you that the first payment is held to cover the set up of the consolidation and that you get it back in the form of your last months payment. They make your last payment for you directly to the creditors when you come to the end of the program and it is put in writing. They have to draw up proposals and file all the paperwork with the creditors to get you started and it does cost money. They give it back to you at the end to make sure you follow through on sticking with the program. You do not get the money back if you drop out because they did all the work in the beginning. How is a non-profit to operate without funds to do it. The only thing they give you to send is the letter to close your account. I asked them why I have to send it and it is so it will show "closed by consumer" on your credit report...otherwise it will show credit grantor. They have you send it to PROTECT YOU. If you listened to your counselor and read your paperwork, this was fully disclosed. They tell you about the payment before they even send you the paperwork. So obviously you do not listen very well!!!!!