Complaint Review: Jubilee Financial Services

I have also been a victim of this scam outfit. My story is similar to several others; paying large application and enrollment fees, putting money in each month with a 25% service charge, and now not being able to get ahold of anyone due to busy signals and disconnected fax machines.

Recently a large creditor backed me into a corner and was demanding their money, or threatening legal action. I took a personal loan out to get them off my back, and when I contacted Peng at Jubilee, I was told that I had $1487.00 in trust. He contacted my creditor and they agreed to settle the debt at $10,700.00, which was 77%

So I would need to send Jubilee the difference of $9213.00. Thank goodness I had the forethought to ask if that $9213.00 would be subject to the 25% service charge (even though, like someone else mentioned, the contract only states monthly payments, not any additional money sent in, would be subject to the 25% fee).

So I asked Peng about it and he confirmed that yes, $2303.25 would go toward their service charge. So then I stated that I would need to send in the $2303.25 to make up the difference, and would that be charged the service charge? Yes, according to Peng. So then $575.81 would be eaten up in service charges, and so on.

What a scam. In retrospect I am glad this creditor backed me into a corner, because it made me see what Jubilee is up to before I gave them any more money. I put a stop payment on my account so at least they can't get any more of my money.

On a good note, I contacted the creditor directly, and he was glad to hear from me and even more glad that I was no longer with this scam company. He agreed to settle the debt at $10,700.00, so I sent the money directly to the creditor. Now I am just trying to get back the money in my trust, but my hopes are low.

So far I have filed a complaint with the California Attorney General's Office, and also with the FTC as this web page suggested. I don't know what I want more...my $1200.00 back or to see these people go to jail for their deceptive business practices. I almost think I would like to see the latter more.

On a side note, thanks to Heidi for all of the updates. I feel like she is the only source I have for information about what is going on.

Kristin
Chicago, Illinois