Consumer complaint received 2025-12-05 00:00:00
Product: Debt or credit management — Debt settlement
Issue: Didn't provide services promised — 
Company: The J. G. Wentworth Company
State: CA

Complaint narrative:
Complaint Summary : I am filing a complaint against JG Wentworth / JGW XXXX  XXXX, XXXX for violations of the Electronic Funds Transfer Act ( EFTA ), the FTC Debt Relief Rule, multiple breaches of contract, misappropriation of consumer funds, and negligent handling of legal documents that resulted in a default judgment against me. 

What Happened : In XX/XX/XXXX, I notified JG Wentworth ( JGW ) of a creditor notice from XXXX XXXX XXXX regarding a debt they were supposed to handle under my debt settlement program. I followed up multiple times on XX/XX/XXXX and XXXX after receiving no response and was told that I had done my part and that JGW would handle the matter from there.

The debt at issue has the following details ( no personal identifiers included ) : Creditor : XXXX XXXX XXXX Original Amount : {$5300.00} Settlement Amount : {$0.00} Payments Made Toward Settlement : {$0.00} Despite being responsible for managing this debt, JGW never negotiated a settlement, never contacted the creditor to resolve the account, and never applied any of my program funds to this debt. 

Between XX/XX/XXXX and XX/XX/XXXX, I received a lawsuit notice related to this XXXX account and forwarded the summons and legal documents to JGW exactly as instructed. JGW failed to forward my summons to the attorney assigned to my account and took no meaningful action. As a direct result of this failure, the case proceeded to a default judgment against me. 

From XXXX through XX/XX/XXXX, I received no updates. On XX/XX/XXXX, I re-uploaded all documents and spoke with a supervisor who stated he would escalate the issue, but nothing was escalated. The law firm later confirmed they never received my summons and could not assist because the case had already gone to default. 

On XX/XX/XXXX, I terminated my agreement with JGW in writing and revoked authorization for all future ACH withdrawals. Despite this termination, JGW continued to withdraw funds from my bank account. The most recent unauthorized withdrawal occurred on XX/XX/XXXX. 

During this entire time, JGW retained funds in my settlement account but did not perform any debt relief services on the XXXX debt. No settlement was negotiated, no payment plan was arranged, and no funds were applied to the debt. Under the FTC Debt Relief Rule, they were not permitted to collect or hold fees without actually settling or reducing the debt. 

On XX/XX/XXXX, I sent a formal written notice telling JGW to stop withdrawals, return all funds, and provide written confirmation of account closure. On XX/XX/XXXX, a supervisor called me, but I requested that all communication be in writing. JGW has not provided any written response and has taken no corrective action. 

Because JGW failed to act on the XXXX debt and failed to forward the summons, I was forced to retain a separate debt attorney to address the default judgment. This resulted in additional attorney fees, subpoena costs, and court expenses that would have been avoided if JGW had fulfilled its obligations.

Company response to consumer: Closed with explanation