Product: Debt or credit management

In late XXXX XXXX XXXX, I received a piece of mail from XXXXXXXX XXXX ( XXXX XXXX XXXX, XXXX XXXXXXXX XXXX XXXX XXXX  stating : " You have been pre-approved for a {$90000.00} Debt Consolidation Loan. '' On XX/XX/XXXX, I applied online at XXXX XXXX XXXX  using the personal invitation code I received in the letter in an attempt to receive a debt consolidation loan to help pay off my wife 's and my credit card debt. In response to my application, I received a phone call from XXXX XXXX who identified himself as a Senior Financial Consultant at Strategic Consulting ( XXXX, ( XXXX ) XXXX ) XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX ). After a credit check, XXXX told me that my wife and I don't qualify for the debt consolidation loan we were supposedly pre-approved for, and we didn't qualify for any other type of debt consolidation loan. Instead, he said he could offer me a debt resolution program where his company will negotiate with our creditors to reduce our debt and pay our debt in a XXXX month term " rapid repayment plan '' for a fee. XXXX told me that they typically reach agreements with the credit card companies within XXXX months, but sometimes they can do so in as quickly as XXXX  days. 

My wife and I were convinced to proceed because XXXX said Strategic Consulting settles debts for over XXXX clients per year and has resolved over {$650.00} XXXX in debt. He sent a notary to our house the next day to sign a contract. The contract was actually with XXXX XXXX XXXX XXXX  of XXXX XXXX, XXXX ( XXXX XXXX XXXX XXXX, XXXX XXXX, XXXXXXXX XXXX XXXXXXXX ). XXXX told me they were a subsidiary of Strategic Consulting which operates in the state of Connecticut where we live. We signed the contract and made our first payment of {$1000.00} on XX/XX/XXXX and continued making payments in the same amount on the XXXX of every month. The majority of these payments were covering XXXX XXXX XXXX XXXX Retainer Fee, Admin Fee, and Service Fee, and very little of our money was accruing in our account to settle any debts. We were advised by XXXX at Strategic Consulting and XXXX XXXX XXXX to stop paying our credit cards and we began to accrue more and more interest and fees on the accounts and severe hits to our credit scores. 

Since the start of our agreement, I communicated to XXXX XXXX that my top concern was the credit card companies being notified that they had power of attorney and to begin negotiation. XXXX told me the power of attorney letters would be sent out after they received my first payment. I XXXX XXXX XXXX went by and I hadn't heard anything so I emailed XXXX XXXX at Strategic Consulting. He replied on XX/XX/XXXX that, " we are already well into negotiations. The creditors have been contacted and we have begun the negotiation process on your accounts. '' I replied on XXXX and told XXXX that XXXX XXXX XXXX told me they have not yet even sent out the power of attorney notices, but they will put in a request to expedite that. XXXX wrote back on XX/XX/XXXX and said he was surprised and that he would check on this. XX/XX/XXXX was the last time XXXX XXXX at Strategic Consulting ever replied to my emails or returned my phone calls. 

I focused my energy on XXXX XXXX XXXX, who said they don't know why someone there told me they would expedite the power of attorney letters because they don't even have the ability to do that. They also said they usually don't send power of attorney letters until they are ready to negotiate a particular credit card account, and they might not even send a letter to some of my companies for years. I stated that this was not what I was promised and I was increasingly concerned of legal action being taken against me without the credit card companies knowing I had enrolled in a debt resolution program to try to solve this problem. On XX/XX/XXXX, XXXX XXXX XXXX sent me an email claiming that my, " creditors have received Power of Attorney documents and have been alerted to cease all calls made to you, and to send correspondence, questions, and offers related to your debt to us. '' In follow-up phone calls to XXXX XXXX XXXX, representatives told me they had no indication in my file that these letters were actually sent and creditors continued to contact us and take action against us as usual since this ordeal began. 

I was promised repeatedly that XXXX XXXX XXXX would resolve my debt with XXXX credit card company by XXXX XXXX XXXX. However, as of XXXX there is no evidence in my XXXX XXXX XXXX online account or any correspondence that they've even begun this process. I continued to try to contact XXXX XXXX XXXX, but it became harder to get someone on the phone or get a concrete answer when I did, or a response to an email. I noticed in my XXXX statement that XXXX XXXX XXXX never deducted my XXXX fees. I've since learned that the XXXX XXXX XXXX revoked XXXX XXXX XXXXXXXX XXXX  accreditation in XXXX XXXX XXXX and they now have a rating of F. I also learned that in XXXX XXXX XXXX, the Consumer Finance Protection Bureau and XXXX state attorneys general are suing Strategic Consulting and XXXX  XXXX XXXX  in a {$100.00} XXXX federal lawsuit, alleging that they are running an illegal debt relief enterprise. 

It is my understanding that there is a restraining order in place, which is why XXXX XXXX XXXX will not communicate with me or deduct any more fees. I contacted XXXX XXXX, XXXX and asked them to cancel my account that I was using to pay XXXX XXXX XXXX and accrue funds to settle my debts. Since XXXX XXXX XXXX, I have paid over {$7500.00}, but there is only {$1800.00} in my XXXX XXXX account ( which will be returned to me ). 

In the past XXXX months, XXXX XXXX XXXX has taken {$5600.00} in Retainer Fees, Admin Fees, and Service Fees, and has not honored any of their promises of service to us. They have only worsened our debt situation as all of the accounts have accrued more interest and we lost valuable time where we thought we were addressing this before it got out of control. It is my understanding that XXXX XXXX XXXX is currently legally unable to provide me with these services either, and I don't trust them to do so after their performance over the past XXXX months and the allegations made in the CFPB 's federal lawsuit.