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Report: #135455

Complaint Review: Money Cares, Inc. - Coram New York

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  • Reported By: Calhoun Georgia
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  • Money Cares, Inc. 356 Middle Country Road Coram, New York U.S.A.

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My husband fell sick and had to have chemo for 10 and a half months. This put us in a financiul bind; we owed around 10000.00 in credit cards and hospital bills.

We then went on the net to try to find a solution to our problem. We found their web site that said try us before you go some where else. So we called them up.

They made it sound to good to be true. We could save around 8000.00 with this company. They started taking out 175.00 from my checking account and 225.00 from my husband's account. They said we would get a statement from this bank we never heard of, so we waited.

Nothing ever came through the mail. At that time we started getting suspicious. When we asked them about this they said, oh we would not get one but we could go on line and check our ballance so we did after 4 months. My husband had 225.00 in his account and I had 175.00 after 5 mon. When I asked about this they told me the first month was for filling fees the second month was for holding untill we finished our progam so we could get like a bonus with our money.

Then they took out 50.00 a month out of my husband's account for fees and 40.00 out for mine. You see they wee holding 400.00 of his money and 525.00 of mine. This did not make any sence.

So one day the hospital called me while I was at home. So I told them what we were doing and they told me they never have been notified and would not deal with any kind of debt settlement or any thing else. So I worked out a deal with them on my own. Then I called Chase Bank. They are the ones I had a card with. They told me they were never were notified either.

Then the lady told me that anything they dropped of my bill like late fees and finance charges that was over 600.00 I would have to pay taxes on. No one told me about this at Money Cares. Not ever.

So I called Laura at Money Cares and told her to offer the hospital a settlement. She called me the next day saying that they could not offer a settlement at this time not knowing I had allready talked to them. You see they told us never talk to our debtors at all. I see now why.

I asked her at that time why she never told me any thing about taxes? She had no answer. I asked her at that time how in the world could some one come to work every morning and lie to people like they were doing. She still had no answer. I told her at that time I wanted my money back she said that I had lost all the money except what was in my accounts for cancelling the agreement.

These people need to be stopped. They are taking advantage of people in need. And are desperate. Now I'm 5000.00 more dollars in debt and owe the IRS.

Please help us get these people out of bussiness before someone really gets hurt and kills themselfs If I had not got out of this I would owe the IRS around 10000.00 in 3 years. I owe them now aroud 1000.00 please help us and others!

Sandra
Calhoun, Georgia
U.S.A.

This report was posted on Ripoff Report on 03/17/2005 07:38 PM and is a permanent record located here: https://www.ripoffreport.com/reports/money-cares-inc/coram-new-york-11727/money-cares-ripoff-dishonest-fraud-lied-about-every-thingkept-our-money-coram-new-york-135455. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
0Author
2Consumer
1Employee/Owner

#3 Consumer Comment

We were also Ripped Off by Money Cares

AUTHOR: Scott - (U.S.A.)

POSTED: Wednesday, September 13, 2006

Money Cares did the same thing to us. They collected nearly $1,000 from our bank account monthly for over 6 months. They never worked out any deals with my credit card companies, and finally I had to make my own deals directly with them. American Express never heard from them and neither did Citibank. Never use Money Cares for debt management because they will just steal your money.

Now Money Cares refuses to refund my money eventhough they never made a single payment on my balances. If you are too a victom of MONEY CARES, please email me at (((email redacted - see below))) so we can win this fight together.

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

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#2 Consumer Comment

Serious Questions about this

AUTHOR: Jim - (U.S.A.)

POSTED: Wednesday, August 16, 2006

First, if you and your husband were sick, where did they get the money to come out of your checking account?

Second, about the fees and taxes. The only way you would have to pay IRS taxes on dropped fees are if a "Financial Institution" cancelled the debt and filed a 1099-C with the IRS and then you would only be paying taxes on the amount of the dropped fees.

Third, I don't know, from your post, how you own the IRS a grand and how that amount will go up to to 10 grand. The IRS is and has programs - especially if you are a hardship case - to reduce any tax liability or eliminate it all together. And it doesn't take a lawyer or accountant to do this.

Fourth, where did the additional 5 grand in debt come from and how would Money Cares be helping you with NEW debt?

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#1 REBUTTAL Owner of company

Money Cares complaint

AUTHOR: Bob - (U.S.A.)

POSTED: Wednesday, August 16, 2006

First, I am very sorry about Sandra's misfortunes that contributed to her debt problems.

One of the highlights of our customer agreements and the issue we harp on the most with our customers is that they are not to negotiate or discuss their case with collectors. It undermines our ability to resolve the issue because the collector knows that they will do better directly with the debtor than with us.

Also, collectors will frighten and lie to debtors in order to achieve the results they want. Unfortunately, Sandra fell into their trap and believed their lies. We constantly are in touch with the creditors, but time is required for the cutomer to accumulate the funds to reach a settlement.

In this case, the customer undermined our efforts and did not set aside the money as they said they would. As for the IRS issue, our agreement clearly states that any amount saved over $600 may be taxable.

Once again, it is likely that this wouldn't be the case here, but the customer chose to believe the collector. Even if it is true that there is a taxable issue after all accounts are settled, it still is a small price to pay to save all that money. It would be like stating that you don't want to win the lottery because you don't want to pay the tax.

If Sandra would have allowed us to help her, she would likely be well on her way to financial recovery. Instead, she ruined her program and chose to believe the people she least should, the ones trying to collect money from her.

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