Consumer complaint received 2019-07-12 00:00:00
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Javitch, Block & Rathbone LLC
State: TN

Complaint narrative:
I enrolled with XXXX XXXX XXXX in XX/XX/XXXX. I agreed to have them withdraw {$200.00} every 2 weeks from my personal checking account, deposit it into a dedicated accounts with XXXX XXXX and apply it to debts they were to negotiate and settle on my behalf. 

They negotiated and reached settlements on 2 enrolled debts ( XXXXXXXX XXXX  and XXXX XXXX ) and I approved the settlements. 

However - they defaulted on BOTH settlement agreements and NEVER informed me! 

One of the accounts they settled and defaulted on received a judgement against me. They collected their settlement fees and defaulted on it for non payment. But they got their fees! 

When I found out about it on XX/XX/XXXX - they told me that the XXXX XXXX  account defaulted due to NSF in my dedicated account. In my research, I found that they deducted their fees from that account which left NSF to make the agreed upon payment therefore resulting in default on the first payment! Clearly NOT my fault! So, of course the negotiated settlement was null and void and has to be renegotiated. I was NEVER informed of any of this!!! 

The second account with XXXXXXXX XXXX defaulted in XX/XX/XXXX. It was negotiated and settled in XX/XX/XXXX. Also in XX/XX/XXXX I was served with a judgement on this account. XXXX told me they would have their legal team ( that I paid monthly to retain to protect me form these things ) take care of it and not to worry because it has been negotiated and all I have to do is approve the settlement. I did just that and continued to make my payments of {$200.00} each payday without fail. 

In XX/XX/XXXX, I started the process of refinancing my HELOC in an effort to obtain a mortgage and make forward progress on my financial obligations. I contacted XXXX advising them of my plans and requesting the payment status of the remaining settlements and when they would be complete. I was told that the XXXX XXXX   account would be complete on XX/XX/XXXX and to call back on XX/XX/XXXX to request the completion letter to submit to my mortgage company. I did just that. 

In the mean time - I was under the impression the XXXX XXXX account had already been paid in full and completed. I later found out that it was in default as well! 

XXXX XX/XX/XXXX, when I called to request the Completion Letter, I was informed that the account had fallen into default back in XX/XX/XXXX due to non payment. In the meantime, my dedicated account with XXXX ( XXXX XXXX ) was showing these payments being made to Javitch Block ( debt holder for XXXX XXXX ) each month like clockwork. I was never told by XXXX that the account had fallen into default due to non payment on their behalf. 

I called Javitch Block inquiring about what happened because XXXX told me Javitch Block had been refusing payments made to them by FDR/Crossroads since  XX/XX/XXXX. Javitch Block insists that no payments or attempts to make payment have been made since the last payment they received on XX/XX/XXXX. XXXX insists that Javitch Block accepted a payment of {$100.00} on XX/XX/XXXX and it cleared my XXXX XXXX account. Javitch Block says they did not receive or refuse any payment or attempts of payment by XXXX and that's why the account fell into default. Javitch Block says they reached out to XXXX numerous times and never reached anyone for an explanation. 

In the mean time, XXXX is still collecting my {$200.00} every 2 weeks and applying it to their settlement fees instead of to the accounts they settled on my behalf. 

AND - no one can tell me where the {$100.00} payment made to Javitch Block in  XX/XX/XXXX is now! 

I have been financially XXXX by XXXX and lied to repeatedly! 

I informed them I would be reporting them to CFPD as well as the BBB. They promptly terminated my contract with them without notice. I had almost {$1100.00} in my dedicated account ( XXXX XXXX ) at the time. They deducted all but {$190.00} from that account for settlement fees on the 2 accounts they did not settled and finalize or even make payments to! 

Now I am left to try and negotiate with these 2 creditors on my own and avoid new judgements and garnishments. 

It has also caused me to not be able to proceed with my mortgage application. 

XXXX XXXX XXXX are CROOKS!!!

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