Client Withdrawals

On May 19th, I wrote about our client’s experience with a creditor who was threatening to sue our client even though Provanta had legitimately settled the account, received a settlement agreement letter, and made the settlement payment to the collection agency.  After 6 months of hard work and persistence, we got the law office to accept the original settlement agreement and cease any further legal action against our clients.

I have another conclusion to this story.  The clients decided to withdraw from Provanta shortly after the situation was resolved.  They do not blame Provanta for the situation because they know we did everything by the book.  They understand that the situation would not have occured in first place had it not been for poor miscommunication between the collection agency, creditor and law firm.  However, they are simply upset that the situation occurred at all.  They are disgusted with the complications that can arise when someone (in this case the collection agency) fails to do their part in the debt settlement process. 

We had settled a total of 5 out of their 10 accounts even though the clients had only been enrolled for 14 months.  The current claim of these accounts were $42,798.81 and they were settled for $18,760.35- the clients received a gross savings of 56%.  Even though the clients still have approximately $21,700 in debt left to be resolved and we’ve provided excellent settlements so far, they decided to try to make payment arrangements with the remainning creditors for balance in full.  They know that this will likely cost them more financially and that it can take a much longer to resolve the accounts but they are willing to take that risk instead of the risk of the above mentioned incident occurring again.       

It’s always difficult for Provanta to see a client withdraw before we complete their program. We understand that circumstances change and sometimes a client may need to withdraw because of a job loss or increased medical problems.  For this particular client it’s more difficult because their withdrawal resulted from a collection agency’s mistake and refusal to admit their error, which led to the drawn out and unnecessary process to correct the error.  We do however respect our client’s honesty and decision and wish them nothing but the best.    

(Ref. 1523)

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