Consumer complaint received 2023-07-16
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit repair services
Issue: Fraud or scam — 
Company: Validify, LLC (WA)

In XXXX, prior to the Covid-19 pandemic, I lost my job. As I searched for new employment, the pandemic hit and everything shut down. I couldn't afford to make payments on my credit cards, and it took about 10 weeks to receive my first stimulus check, which I hoped would help me catch up on missed payments. During this time, I enrolled in a debt management program with a company that consolidated some of my credit card balances into a single payment. I successfully paid off this consolidated debt within 2 years. 

Later on, I received a telemarketing call from XXXX XXXX XXXX XXXX ( now Redwood Processing ), which offered an alternative debt resolution method. They claimed that when creditors sell debt to collections agencies, proper processes and protocols are not always followed, creating a gray area where debt can be dismissed or discharged. They suggested that to invalidate the debt, I should stop making payments, as making payments would acknowledge the validity of the debt. In a moment of desperation, I signed an agreement with them, hoping for a fresh start. They informed me that the debt resolution program would take approximately 21 months and would cost {$8100.00}, payable in monthly installments of {$380.00}. 

However, my debt was never resolved, and it has now been 45 months since I enrolled in the program. To make matters worse, one of the original creditors has filed a lawsuit against me. I'm filing this complaint because, based on my research ( including the FTC website, RCW, and consumer protection acts ), I should never have been charged upfront fees for a program like this. If I hadn't been paying XXXX XXXX XXXX XXXX {$380.00} per month, I could have used that money to make arrangements directly with my creditors and pay off the debt. 

According to the FTC, debt settlement companies can not collect fees before settling your debt. They usually have two fee arrangements : a proportion of the resolved debt amount or a percentage of the amount saved. The company can only charge you a portion of its full fee each time it successfully settles a debt with one of your creditors. 

Although the company 's website, XXXX is no longer active, I can still access their " portal page '' at XXXX XXXX XXXXXXXX  where I can log in to view my payment history and uploaded documents. 

On XX/XX/XXXX, at XXXX XXXX, I sent an email to XXXX XXXX XXXX XXXXRedwood Processing/XXXX XXXX  , requesting a full refund for services not provided and the invalidation of their upfront fee contract. 

On XX/XX/XXXX, at XXXX XXXX, I received an email from XXXX XXXX XXXX XXXXRedwood Processing/XXXX XXXX , stating `` Hey XXXX, I hope all is well. I have forwarded this email you sent to my management. I will get back to you as soon as I hear from them. Take care and have a good evening. '' On XXXX XXXX XXXX XXXX XXXX XXXX I received an email from XXXXXXXX XXXX XXXX XXXXXXXX at XXXX XXXX XXXX XXXXRedwood ProcessingXXXX XXXX , stating , XXXX Hi, I hope you are well. We will send a full refund check to XXXX. Can you please confirm her address? Thank you. '' I confirmed the address via email on XXXX XXXX XXXX XXXX XXXX XXXX, and requested email confirmation once the refund check was sent. However, I did not receive the check. 

Despite making four additional email attempts to request confirmation of the refund check, I did not receive any response from the company. 

On XX/XX/XXXX, I filed a formal complaint with the Washington State Attorney General 's Office. The office confirmed on XX/XX/XXXX that they were unable to obtain a response from the company regarding my complaint and directed me here.