Problem Solver: Debt Consolidation Company Pays Overdraft Fees

Getting out of debt can be a daunting task. That's why many people turn to debt consolidation companies. For some it's the answer to their problems for others it's just the beginning of more to come. One Upstate viewer says her debt consolidation company put her more in the red than when she started. Dianne Derby handles her hassle and tells you what you need to know before you consolidate in this 7 On Your Side Problem Solver.

"I used some credit cards to pay bills," said First Consumer Debt Consolidation customer Alisa LeGrand.

Paying bills with plastic isn't what you want to do but it's what LeGrand says she was forced to do when she took time off work.

"Whenever I went back to work I said I'm gonna try and consolidate these (bills)," said LeGrand.

So she headed to the web and found First Consumer Debt Consolidation.

Mrs. LeGrand says the quarterly statement from First Consumer Debt Consolidation showed initially the company charged her $479 to help her out. But she says once she found out they were also charging a $59 monthly fee she called to cancel.

"I called them and they said 'We explained that all to you' and I said 'No you didn't. It was a one time fee'," said LeGrand.

A one time fee of $479 dollars? The Better Business Bureau says when choosing a credit counseling agency in general you should not expect to pay more than $75 in set-up fees or make a monthly payment that exceeds $40. The BBB says if you're financially destitute ask if they'll waive or reduce the fees.

"I said 'Do not ever take anything out of my checking account again. I am not happy with you all'," said LeGrand.

But she says First Consumer Debt Consolidation continued to take money from her account leaving her with $280 in overdraft charges. The good news...the company refunded the money they had taken but she was stuck with the bank fees.

"I said, 'Well I'm going to call my local news station and tell them all about you'," said LeGrand.

The President of First Consumer Debt Consolidation, Jeff Gombos, would not discuss the details of her case with us but assured us Mrs. LeGrand would be taken care of. She was...and on Monday afternoon she got a call that she'll have a check to cover the bank charges by the next day.

We checked out First Consumer Debt Consolidation on the Better Business Bureau website. The BBB gave them a "B plus" which is a very high company rating. That rating means they think the company would not have a significant number of complaints or other considerations that could pose a problem to consumers.

To keep you out of trouble when picking a credit counseling agency the BBB suggests the following:

-Carefully evaluate advertisements. The BBB says good credit counselors rely on client referrals not ads.

-Interview several agencies and ask if they are a member of the National Foundation for Credit Counseling.

-Find out if services are personalized.

-Check the company complaint records with the BBB, your state attorney general and consumer protection office.

For more tips from the BBB about choosing a credit counseling agency click here.