ComplaintsforMediator Law Group

• Initial Complaint

  12/15/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I, **************** have been working with Mediator Law Group, P.C. since 08/16/2021 as a result of their services I was able to settle 3 credit card accounts plus I paid the 29% Performance Fee for each account plus the Custodial Fee to Mediator Law Group. P.C.. However, there's an account with Prosper Marketplace that was not paid off, we had reached an original settlement and payments were occurring however, I was unable to make 2 payments and that settlement was forfeited. In order to resume negotiations with the creditor (Prosper Marketplace) I was informed by an employee (***************) that I had to have money in my account so that Mediator Law Group, P.C. could show Prosper Marketplace that funds were available to resume negotiations. Therefore, on 09/15/2022 I sent a lump sum of $2,000 and continued monthly 9/16/22, 10/17/22, 11/16/22 in the amount of $399.66. All to demonstrate to Prosper Marketplace funds available in my account. As of today 12/15/22 my account has $67, when I inquired as to where are my funds Mediator Law Group, P.C. claims that it was used as their Performance Fee. However, Prosper Marketplace has not been settled and I was informed that money had to be in my account to demonstrate to Prosper Marketplace that there was money for the renegotiation. At this moment I no longer trust Mediator Law Group, P.C. to be working with my best interest in mind and disagree that they take the my money in my account to pay for their Performance Fee. Therefore, I am requesting a refund of the following: lump sum of $2,000 and continued monthly 9/16/22, 10/17/22, 11/16/22 in the amount of $399.66 I have attached an account summary from Mediator Law Group, P.C..

  Business response

  01/19/2023

  Business Response /* (1000, 5, 2022/12/29) */ Thank you for bringing************'s to the attention of Mediator Law Group (MLG). MLG strives to exceed the expectations of every client we serve by adhering to our Number One Shared Value; De what is in the best interest of the client.*********'s BBB complaint is evidence MLG failed in our effort to exceed her expectations. Having taken the time to complete a comprehensive review of*********'s file, including her BBB Complaint, I believe a brief explanation may be able to resolve the issue at hand to*********'s satisfaction. The only mistake described in*********'s Complaint is "plus the Custodial Fee to Mediator Law Group. P.C" MLG does not collect a monthly Custodial Fee. This fee is collected by Debt Pay Gateway (DPG). DPG is the independent third-party Special Purpose Account Administrator********* opened an account with to facilitate her Debt Settlement Program. DPG debits*********'s account and holds the funds into an FDIC insured bank account solely controlled by*********. Ms.***** engaged MLG on June 30, 2021. At this time, she enrolled four individual unsecured debts totaling $24,626. According to the Agreement she signed MLG was to negotiate settlements with each of her creditors. She would pay the negotiated settlements from her monthly deposit held in her DPG account. Fees earned by MLG would also be paid from her DPG account. MLG works under a contingency fee agreement. MLG must complete the following steps to earn a fee on each account enrolled. Since********* enrolled 4 individual debts, MLG had the opportunity to earn 4 four separate fees. * Step One - Reach a legally binding settlement on an enrolled account * Step Two - Obtain legally binding documentation on an enrolled account * Step Three - Obtain approval from********* on the negotiated settlement terms * Step Four - The first payment of the negotiated terms is made to the creditor The first settlement on*********'s file completed all these steps on September 15, 2021. Then the second one was completed in July of 2022, the third and fourth happened in August 2022. By the time the fourth settlement was made MLG had earned $7141.54 but had only collected $1107.92. MLG regularly postpones collecting its earned fees from clients to obtain additional settlements instead. We have found this practice is in our client's best interest, adhering to our number one shared value. Once a settlement is made fees, interest and penalties stop accruing on the settled debt. This allows our clients to see the largest possible while ensuring no further collection activity, including lawsuits, will happen on settled accounts. The trouble on*********'s file began when she missed 3 consecutive deposits. This caused her to miss a previously scheduled settlement payment according to the terms of her Prosper Settlement. Missing this payment caused the previously negotiated settlement to become null and void. MLG would need to renegotiate a new settlement on this account. MLG understand this may happen and never charges a client a second fee for settling an account a second time, even though it is twice the work. Ms.***** called our office and asked what it would take to have that account settled a second time. To be accurate, she was told that once funds are available in her account to fund the settlement one will be made. She made a deposit of $2000 assuming those funds would be used to make a settlement with Prosper. Instead, the funds were allocated to the outstanding fee balance owed MLG. During the same period MLG contacted Prosper and negotiated a second settlement on behalf of*********. This happened because********* said she could make the deposits needed to settle all her accounts instead of making monthly deposits.********* declined the settlement negotiated with Prosper because she was not happy that her deposited funds had been allocated to the fees earned but not yet collected by MLG. MLG wants to help********* accomplish the goal we set out to make happen together back in June of 2021. We want to make sure all the debts enrolled are settled. MLG offers to make a settlement on her Prosper account for a third time. MLG will not charge an additional fee for this additional work.********* will be required to pay the terms of the new settlement. I certainly hope we can work together to resolve this complaint. Please feel free to contact me at the number below with any questions you may have. ********** General Manager ************

• Initial Complaint

  09/13/2022

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  09/07/2022 ********** wanted to make things right and make me feel better about the service they provided at mediator law Group *****************************************************. ********** offered me a settlement of $1,000. He said he would call me on 09/08/2022 and I would have the money in about 3 days or so. Mr. ********** never called me. I called him on 09/09/2022 left him a message but it is now 09/12/2022 and I have not received a call back from anyone at mediator law group. my customer number *********. further more he also told me that he would check his call records and if they didn't cross there T's and dot their eyes he would give me a full refund. I also requested transcripts of my calls and never received them.

  Business response

  09/19/2022

  Consumer Response /* (2000, 7, 2022/09/19) */ settled with Mr. ****. He paid me the settlement and more. Thank you Mr. **** for helping feel like I didn't pay more than I should have.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩