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Credit Councelling and Wells Fargo

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Topic: Credit Councelling and Wells Fargo
Posted By: whattodo
Subject: Credit Councelling and Wells Fargo
Date Posted: 20/February/2007 at 8:21am
Hi everyone. 
I'm not going to get into all the details how I got into Credit Councelling...basically it was a forced decision.  Not entirely bad in a way, but our counceller didn't seem to do much to better our situation and not really being helpful now. 
Wells Fargo was one of our creditors...we have a longggg history with them (trans Canada Credit before them)...our original loan was for 25,000 and over a ten year period, they rewrote the loan 4 times...by January of 2006 the loan was down to 9400.00...WOW...it was at 20% interest...I know it was a stupid move...but desperate times called for desperate measures and we sure paid for it...
So in January my husband negotiated with Wells Fargo and he brought the loan down to 5900.00 at 10% interest....but the only way they would accept would be through credit councelling...so we did it...we pay 191.00 a month for 36 months....
So, in January I received this letter from our credit counceller that we needed to pay x amount of dollars by a certain date or Wells Fargo is going to cancel the deal...I got nervous and paid it but I couldn't understand why this would happen....I received a year end report from Wells Fargo and it states that the total amount paid to them equals (less 29 bucks) the total amount that I should have paid.
So, I received this call yesterday on my voicemail and it was a woman in the bad debt department of Wells wanting me to call her back. 
Can they cancel this at anytime, and if they do will they revert the loan amount back to it's original amount at 20% interest?
 
My credit councellor doesn't seem too interested in dealing with this so I would like any advice you may give.....
 
I am seriously thinking about taking Wells to small claims court and see what will happen.....do you think that's a wise idea?
 
 



Replies:
Posted By: masy
Date Posted: 23/February/2007 at 1:37am

Is this credit counselling place under Credit Counselling of Canada? I'm also in credit counselling for my student loan and it's my understanding that when you work out a payment plan, it's a contract that can't be changed without reviewing your finanical situation with you in person. The job of the credit counsellor is to work with your income and expenses and deteremine a payment plan, and it doesn't sound like your counsellor is doing their job and now you got a call from someone in the bad debt dept? Call her back and see what she has to say, then call credit counselling and make a complaint, because I'm sure you paid a fee to credit counselling to help you with your debt and they clearly failed to work on your behalf. Find out what your rights are.




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