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Unbalanced Fees and Settlement Policies
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I contacted FDR today and was highly dissatisfied when I found out that they are exceeding the 21% settlement fee as promised. Although the fee will balance in the end to equal 21% they are YTD at 58% going to FDR Fees instead of the settle to the debtor
which is only at 42% of total payments. They have depleted all funds deposited made into the reserve savings account with crossroads to pay their fees first. By depleting the account and taking more than the 21% as agreed they have been a contributing factor
is jeopardizing the payment of the settlement to the debtor. As a debt management company they should maintain enough funds in the reserve savings account to ensure the next payment the the settlement is able to be made on time. As the client I have had to
suspend one month of my payment to plan for a funeral for my sister. Although I anticipated enough funds in the account to pay the settlement payment the 58% that was taken out exceeds the 21% allowed for fees. As a debt management company they should know
better enough not to deplete the entire account especially when they are depleting it to pay themselves instead of the settlement debtor. I contacted them to inform them of this and they didn't care to assist. They kept telling me that if I cannot make my
payment to the settlement then I would negate the settlement terms. So I told them I can make the settlement payment as agreed of $100 but couldn't pay the $240 in FDR fees. They told me that if I didn't pay both it would violate the settlement with the debtor.
I then asked if I can contact the debtor and arrange a payment with them directly to ensure I was not in default with the settlement. They told me I couldn't. They are the Debt management company and are not willing to postpone their fees to honor the settlement
agreement. I could understanding if they didn't want to if they weren't getting their 21% already however they have already taken 58% YTD of the total settlement payments. This is an unacceptable business practice.
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