beyond finance lawsuit reddit

so far my experience has been good. i’m 6 months in, 2 out of 10 debts have been settled for about half of what they were. my credit was already on the lower side because of high utilization so it went down but not that much. the customer service answers your questions and concerns so quickly. just be sure to read the letters you get when they do settle. a lot of the horror stories you see online could have been avoided (like higher interest on payments than beyond stated). all of the settlements are sent to you from beyond, but you also get a letter/email from the bank with all of the fine print and terms.

also just keep in mind you need to have enough money in your account with them (deposited) in order for them to settle. the payments for the settlements pull directly from that account. they do all the work for you which is a plus IMO

Today I withdrew from a debt settlement program from with Beyond Finance. Enrolling with them was the biggest mistake of my life, and I do not recommend anyone to work with them. Please find another option!

I was searching for debt consolidation online. I still have the email from them with a link saying that I “qualify for their debt consolidation program.” It was never debt consolidation, it was debt settlement. They really convinced me that this would be beneficial to me, and I made a big mistake by believing them.

I enrolled in March 2023, and the rep made me feel confident that they would help me settle my debt within 6 months, when in reality that wasn’t the case. She even said she used their services, but now I realize that was probably just a sales tactic. My credit score has tanked, as many others said it would. I am not even able to qualify for any secured credit cards, that is how badly Beyond Finance has affected my credit score.

I had 4 accounts enrolled in the program, they were able to settle 1 very quickly and the other 3 have been in limbo for a while. I kept following up with the reps, and one said last night that I need more funds in my “dedicated account” to show good faith (or something like that) to the creditors, to where they would agree to settle. The amount that they estimated I would need in there would take an additional 14 months to accrue (based on my monthly payments.) By then, the accounts would have already been a charge off, which I think also negatively affects my credit score.

On the 1 account that they did reach an agreement with, they only made 2 $50 payments towards, and the rest of the money went towards fees. I assume anyway, the website is not user-friendly and they do not willingly share any of this information.

The only other negative I can think of right now, is that any settled debt will be considered income, so if I stayed in the program, I would have to worry about owing money on my taxes. Beyond Finance also charges (I think) a 25% fee, so in reality, I was not saving any money by using them.

Anyway, so today I called to withdraw from the program. The website says “of course, if you ever withdraw from the program, the remaining funds in your dedicated account (minus banking and earned settlement fees) are – as always- yours.” However, the rep that I spoke with during the withdrawal process said that back office has to determine if I will be getting anything back, and it will take a few days. During the entire process you are in the dark about what the actual fees accrued are, so I have no idea if I will be getting the remaining funds back, but I will keep trying.

Sorry for the long post, but I wanted to be thorough because I think that they delete negative reviews, as it is hard to find any online. I am now using a non-profit credit counseling agency. They were able to get my interest rates down to 1.9% and 9% and reduce my minimum payments significantly. I feel much better about this, then debt settlement.

I am absolutely spiraling after I read the news last night about the new lawsuit. I am two months away from forgiveness. Oct 1 would be 10 years at my current qualifying employer. I have some periods of forbearance that have now been counted and of course the three years of Covid pause. The thought of it all being taken away so close to the end of the tunnel for me is devastating.

My question is I have some work that I believe is PSLF eligible that I have never submitted and now I am wondering if I should to possibly try to get out of the program before October 1. I worked for two years from May 2007-Aug 2009 at a likely qualifying employer (nonprofit museum). I was paying my loans on the standard plan at that point. I’m unsure of what my hours would have been but between 30-40 every week. Does anyone have any idea if they would count this time toward my pslf? Any help would be much appreciated.

As some of you know, I am a credit attorney. That means I help people with credit and debt issues. I often see posts here from folks who have been sued by debt buyers, like Midland Funding, Portfolio Recovery, LVNV and Cavalry. These folks by charged off credit card debts, and often sue.

I know being sued is intimidating, so I figured I would offer some guidance. Please note that as I am not your lawyer, nothing here is legal advice to your specific case:

  1. Once you’re served, it is important file an answer as soon as possible. That is your #1 task. If you get an answer in, you avoid a default, and live to fight another day. In an answer, it’s usually best to deny the allegations of the debt buyer.
  2. Hiring an attorney represent you generally leads to the lawsuit being dismissed without you paying. 90% of people don’t have lawyers in these cases, and the debt collection law firms hate dealing with attorneys. If you hire a lawyer who knows what they are doing, you can often get the case thrown out.
  3. Many credit cards have arbitration clauses, so the debt buyer should not be suing in court anyways. Rather, they should be filing arbitration. Compelling arbitration is a little bit complicated of a legal process, but it is a tactic often used to get these debt lawsuits dismissed.
  4. If your case is dismissed with prejudice (that means the debt buyer cannot file again), dispute the debt with the credit agencies. Attach proof of the dismissal to your letter. If the debt is not deleted, you may have the right to sue the credit reporting agencies and debt buyers.
  5. In many cases, settling is easiest, even if you filed an answer. Offer to pay 30% of what they are suing on, but be aware that they often won’t settle for less than 60%. I rarely tell clients to settle because we try to get these thrown out without the client paying, but just be aware of this if you do settle.

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I trust them. I have significantly more debt and they’re helped negotiate my debt to about half, plus fees. Slightly better option than bankruptcy in my case. They were very transparent during sign up.

Here’s my notes about them…

  • You are instructed to stop payments to all enrolled creditors. Obviously, you’ll default, get accounts charged off/canceled, and take a hit to your score.
  • Creditors tend to settle for about half of the balance. You also pay Beyond a fee of 25% for their work. This is better than accruing more debt through interest.
  • You’ll pay monthly or bi weekly into an account used to pay creditors once a settlement is reached. This means some smaller creditors will be paid first and others have to wait for the account to grow, and they’ll get more aggressive.
  • You can absolutely negotiate on your own and remove the account from Beyond’s hands. I entertained offers from two creditors knowing I’d save not paying Beyonds’s fee. Some creditors don’t take you seriously as you’re not an expert, so it might be better to let Beyond handle those.
  • You might get sued. I haven’t yet but some report that they have. Most end up reaching an agreement with their creditors legal counsel just before court. It’s mostly a scare tactic. They also hope you don’t show up and they get an automatic judgement.
  • Very few have had judgements against them with wages garnished. I’m going to take a guess that these people have a lot more income that they could be using to pay off the debt and that is why a judge ruled in such as way.
  • Bankruptcy is still an option at anytime should thanks get hairy.

You can always do this yourself but I work two jobs just to break even and have no time to haggle with my creditors.

Hopefully we all learn from our financial mistakes. I haven’t touched credit in six months and I found out that it’s possible if you make some changes and lower some of your standards.

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