Complain about a product or service

American Debt Management Services

David of Williamsville NY (3/6/02):
I have subscribed myself to a non-profit organitation 501c3 to get me out of debt. I have given them 3 accounts with over $50,000 in debt to have them reduced my payments. I spoke to their senior analyst Amy. R. which is their trainer and Sr. Consumer Consultant. She rushed me to send them my first payment february in which was over $1000.00.

The first payment was suppose to be sent to my creditors and they will only charge me $7.00 per account for administration cost and the rest will be sent and devided to the creditors. It has been over 30 days and my creditors have not received notice that I am in a credit counseling firm. I have made two payments of over $1093.00 per month in which you deduct $21.00 for administration cost. I have verbal agreement with Amy that I will only be charged $7.00 per account of my first payment. I have signed a contract that I agreed of paying the first month as a contribution of their services and $7.00 per account after that.

I was misled by the Sr. Consultant of American Debt Management Services that my first payment will be to my creditors and not as a contribution. In the contract it does not give an amount of contribution.

My consequences that has occured to me of being into a consumer credit counseling is that it affected me being one month late to my creditors and it was not into my budget to pay $1000.00 for services that was suppose to be for a non-profit organization". My creditors are still taking the minimum amount fee every month which is total of $1093.00 and American Debt takes out $1093 out of my checking account to pay them as they agreed. (This makes to debits out of my account intil the creditors accept me into the program)

In conclusion my creditors do not show me that I am in a consumer credit counseling organization and American Debt charged me a contribution fee of my first month payment to the creditor into the program that is going to them and not my creditors. I requested the President Mr. Carlo Malcia by 501c3 law he is required to show me his balances and he informed that "he does not have to show me anything especially to consumers and he pays lawyers all the time on this issue."

James of Oceanside CA (1/4/01):
This is a debt management company that was to consolidate our four credit cards into one payment and reduce our interest rate. They promised to be online in 3 months. I have been with the program for 5 months and, although they are paying two of the accounts, one of my accounts was never contacted and a proposal was never made. I have been left on hold for up to two hours, I have e-mailed, faxed, and left voice mail, and I am being totally ignored.

Mr. Schadel, my credit manager, obviously left the company soon after I enrolled and his extension is no longer valid. Money has been electronically withdrawn from my checking account every month, yet this company has not received payments for 5 months.

I am five months behind in payments to my credit card company. ADMS has pocketed the money from my checking account and made no attempt to fulfill their contractual obligations, and have refused to return my calls, faxes or e-mails. We were on shakey ground financially which is why we went with this program in the first place, and I have no way to come up with the several hundred dollars needed to bring my payments back up to current status. Prior to joining this company, my credit was good. Now, I probably couldn't finance a head of lettuce.

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