Consumer complaint received 2018-10-29
Company: Delay Group DBA The Debt Management Group
State: PA
Product: Money transfer, virtual currency, or money service
Sub-product: Debt settlement
Issue: Confusing or misleading advertising or marketing

Complaint:
I believe that I was told some very unethical business practices. I was contact by a letter in the mail in early XX/XX/XXXX. I thought the letter looked very official and that I may be in trouble with my debt. I have about XXXX in credit debt at the time. The letter stated that I owe XXXX. Which is why I thought it was weird that whoever sent the letter knew how much debt I was in. But I had never missed one payment and had a decent credit score. I made the call to the number on the letter. It turned out to be the debt management group. 
I spoke with them about my credit problems. He convinced me that I would never be able to get out of debt doing what I was currently paying. The gentleman that I spoke to was named XXXX XXXX. He told me that I could pay {$610.00} per month ( which was about the same as I was paying my credit cards monthly ), and that I could get out of this debt in appx. 30 months. I asked some questions to him which I now look back and think that it was unethical sales techniques. I asked him if doing this program that it would hurt my credit score. His response was that there is nothing that I will do that will hurt your credit score. Which now that I look back at it. He was just saying that he isnt not paying my credit card payments. I am the one who will be missing my payments, therefore XXXXXXXX XXXX my credit score. But by me not paying it was XXXX XXXX my credit score. 
The next thing he told me was that every XXXX of the {$610.00} I paid into the program would go towards my debt until it was settled. I was going back looking at my account and noticed that they took XXXX it as payment for debt settlement. I understand companies need to make money. I asked Mr. XXXX numerous how his company makes money. He said they make money by investing. He did not tell me that the company charges 22 % of the total debt. They went off XXXX total debt that I had with them. They know that {$22000.00} x 22 % XXXX. They very easily could have told me I would have had {$4800.00} in fees if they settled my debts. That was never stated. And being that I asked how the company made money and it was by investing it. I believe that was very misleading things to say. 
I did sign a contract that had the did state about the 22 % fee. But it was on an electronic document that I just went over very quickly with someone and checked on boxes that I had to sign. I did not have sufficient time to read everything over very quickly and only checked on electronic signing. There was a list of all of my payment but it only estimated the fees. It did not state the exact amount the Debt management group would take. They knew the fee to them would be {$4800.00}. That is the amount that the company was going to take as a fee. When they knew exactly what their fee was going to be. They never once said what the fee would be. 
After speaking with my chase account yesterday. Which I was able to settle with them yesterday. I found out offers to settle were sent out to The Debt Management Group. There was one sent in XX/XX/XXXX and another in XX/XX/XXXX. I was never even told an offer was made. I had followed up with the Debt Management group. I asked them what offers were sent to them. They told me that the one sent in XX/XX/XXXX was for 2 payments of {$1200.00}. The second one was {$2400.00}. I told them at the very beginning. If any offers were made please let me know. I wanted to get this settled as quickly as possible. Those offers were never communicated to me. They had told me to change my address on my credit card account. They did this so I never had a fighting chance to pay or negotiate an offer with them. I believe they did this because then I would not have to owe them the 22 % fees for settling my debt. They trap you in to signing with them. Then they are only concerned about getting the {$610.00} every month. I would have done whatever needed to be done to make those offers work. I have people that would have loaned me the money to take care of it. Now my settlement with chase is {$6700.00}. Cost me over {$4300.00}. I could have done everything that they did on my own. All they did was trick me into changing all my information to their information. I did not even have a chance to settle this on my own. All that they did was advise me to stop making all credit card payments. And then, they waited for offers to come in. There wasnt anything else done. This is extremely unethical business practice I believe. 
After making all of these complaints to the owner of the company. I believe his name was XXXX. He asked me what he could do to make this right. I asked for half of the fees that he had previously been charged for handling my 1st debt. It would have been about {$1200.00}. He said he would agree to pay me {$1000.00} if I had signed a waiver not to sue or bring class action against him. I did not feel like going through the hassle of suing and I needed the money to put towards my {$6700.00} debt. I signed the waiver, a little over month after receiving it. I asked to confirm if they had even received the waiver. They never responded so I am making this complaint to your organization. 
Through 14 months of dealing with the Debt Management Company. I only received 1 phone call from them. I was to tell me I settled with my XXXX card. 

I also found a link to an article about the debt management group being sued : https : XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation