Fugua Financial Services / Credit Counciling - made credit card debt worse, not better

Complaints.com received the following consumer message on July 9, 2002:

From: midge hitt [midgiemarie AT fuse.net]

RE: Fugua Financial Services / Credit Counciling - made credit card debt worse, not better

I had a hugh credit card debt that I wanted to turnaround so I was recommended by the BBB of Fugua Financial Services, 37 W. 7th Street Suite 300, Cincinnati, OH 45202. I signed a contract commiting to pay a certain amount each month and I could eliminate the debt in 3 years.

This was a non-profit organization that accepted donations which was in the contract up to 15% but I would only be obligated if he did not get this from the credit card companies and he assured me that it always comes from them in his program to eliminate people from filing bankruptcy.

However, as it turns out he did not help me, the credit cards company's raised all my interest to 24%, late fees, calls to my home. Numerous calls I made to Mr. Jerry Fugua that he would get these type of issues resolved.

I saw my monthly statements and a difference of the money I was paying this firm-vs- the amount being applied to my credits cards and I called him for an explanation and he explained this goes in an escrow to buy them off at the end of the program.

Recently I have found out from a financial statement that I ask him to send he had noted that each month he was taking a 15% upfront donation and when I confronted him he said it was in my contract I signed. He was never totally honest with me about this donation and how it could affect me. How could I get these cards paid off if he was taking a 15% donation and putting it in his bank account.

I was in his program for about 7 months and he took a $795 donation. Now that I have confronted him and have terminated our relationship. He will not return my money.

After all, no one should take upfront money until they have completed the job and I've been told this is illegal.

Please let this company know that I have filed a complaint.

I would like this made public to keep another individual from falling into this type of trap and when they are at their most vulnable state to dig theirself out of a debt and the last thing they need for a company that specializes in credit counciling to make things worst instead of better.

Sincerely,

Midge M. Hitt

midgiemarie AT fuse.net