[MA] [MA] What are my legal options if my debt-settlement company didn’t perform as agreed?
If JG Wentworth failed to settle my largest credit card account, stopped responding to me, and the debt was charged off despite our agreement, is this a breach of contract, should my monthly payments be reduced, and do I have grounds for legal action?
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Solved
Here’s what your situation looks like from a legal standpoint:
1. Breach of contract: There is a strong argument that JG Wentworth (JGW) failed to perform its contractual obligations. You hired them to negotiate settlements with your creditors. Instead:
- Your largest account was charged off,
- They did not notify you, and
- They ignored multiple emails, showing a breakdown of communication.
Under basic contract principles, a service provider has a duty to:
- Perform with reasonable care,
- Keep the client informed, and
- Act in accordance with the terms of the agreement.
If they failed to take timely action or failed to communicate material changes, this may constitute a material breach.
2. Payment amounts handling of charged-off debt: Debt settlement programs typically require you to deposit money into a dedicated account to fund future settlements.
If the $20,000 account has now been charged off, your payment plan likely should adjust to reflect only the remaining active accounts.
However:
- Do NOT change your payment amounts on your own.
- Request written confirmation from JGW explaining:
- How your payments will be recalculated,
- What happened to your charged-off account,
- Whether a settlement strategy is still possible, and
- Whether any funds were improperly allocated.
Failure to provide a clear explanation may further support claims of mismanagement.
3. Potential legal claims under Massachusetts law: Chapter 93A - Consumer Protection Act. Under Massachusetts General Laws ch. 93A, consumers are protected against unfair or deceptive business practices. Debt settlement companies are explicitly covered.
Possible 93A violations include:
- Failing to communicate significant account developments,
- Mishandling or neglecting your account,
- Allowing a charge-off without informing you,
- Misrepresenting their services or efforts,
- Ignoring reasonable requests for updates.
Under Chapter 93A:
- You may be entitled to double or triple damages,
- Plus attorney’s fees,
- If the conduct is found to be willful or knowing.
A 93A demand letter is typically required before filing suit.
4. Regulatory complaints you can file: If JGW is not responding or is mishandling your account, you can file complaints with:
- Consumer Financial Protection Bureau (CFPB)
- Massachusetts Attorney General’s Consumer Protection Division
- (Optional) Better Business Bureau to create a public record of the issue
These complaints often prompt faster communication from the company.
5. What to gather before meeting an attorney: Collect the following:
- Your contract with JG Wentworth
- Payment history and deposit records
- All emails and messages showing lack of response
- The charge-off notice from the creditor
- Any account summaries or portal screenshots
A Massachusetts consumer protection attorney can evaluate:
- Whether JGW breached its contract
- Whether you have valid claims under Chapter 93A
- Whether you’re entitled to actual damages + enhanced damages
- Whether arbitration or litigation is required
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Hello, I entered into a contract with JG Wentworth in October 2024 to negotiate on my behalf to settle my 4 credit card accounts. Total debt was about $48,000. The largest account with Capital One was $20,000. I was instructed by JGW not to answer any correspondence from Capital One and to forward my monthly statements to a customer portal, which I did.
In April 2025 I received correspondence that my largest account with Capital One was charged off and not settled by JG Wentworth. I immediately contacted their customer service department and they directed me to their Negotiations Department. I have continuously contacted their Negotiations Dept via email and have NEVER received a reply.
FIRST question: Is this not a breach of contract?
SECOND question: Since I have been making monthly payments based on a $48,000 debt that I assumed would be settled on my behalf, now that this account has been charged off should my monthly payments be based on the $24,000 they negotiated on my behalf?
LASTLY: Is there any legal action I can take for their mismanagement?
Thank you!!
I understand how frustrating this must be. Have you kept a record of all correspondence and communication with JG Wentworth?
Yes.
When you entered the contract, did they provide any specific guarantees or timelines for settling your debts?
I don't know, I’ll have to review the terms of my agreement. But clearly, I did not agree to let them fall asleep at the wheel and let my largest account get charged off. (Since the account has been charged off, does JGW still have the ability to negotiate terms with Capital One?)
Is there anything else the consumer protection lawyer should know before I connect you?
Yes.
Hello, and thank you for reaching out! I’m Jon, a licensed attorney with over 13 years of experience, here to help.
Just a quick note: This conversation is for general information only and does not create an attorney-client relationship.
Regarding whether JG Wentworth can still negotiate with Capital One after the account has been charged off—it is possible, but it may be more difficult.
Could you tell me which state you're located in? That will help with the legal context.
Massachusetts.
Thanks. Do you recall if your agreement had any terms about how they would handle negotiations, or what would happen if an account was charged off?
While reviewing that, did JG Wentworth provide any updates before the account was charged off?
No updates whatsoever. I called several times saying it had been six months with no progress. They kept telling me to keep providing the monthly statements, which I did.
Got it, that sounds very frustrating.
Did they give any written communication about how your payments would be adjusted if certain accounts were not settled?
Or is there anything else you'd like to add before I start working on your answer? If not, I’ll get started right away.
No.
Here’s what your situation looks like from a legal standpoint:
1. Breach of contract: There is a strong argument that JG Wentworth (JGW) failed to perform its contractual obligations. You hired them to negotiate settlements with your creditors. Instead:
- Your largest account was charged off,
- They did not notify you, and
- They ignored multiple emails, showing a breakdown of communication.
Under basic contract principles, a service provider has a duty to:
- Perform with reasonable care,
- Keep the client informed, and
- Act in accordance with the terms of the agreement.
If they failed to take timely action or failed to communicate material changes, this may constitute a material breach.
2. Payment amounts handling of charged-off debt: Debt settlement programs typically require you to deposit money into a dedicated account to fund future settlements.
If the $20,000 account has now been charged off, your payment plan likely should adjust to reflect only the remaining active accounts.
However:
- Do NOT change your payment amounts on your own.
- Request written confirmation from JGW explaining:
- How your payments will be recalculated,
- What happened to your charged-off account,
- Whether a settlement strategy is still possible, and
- Whether any funds were improperly allocated.
Failure to provide a clear explanation may further support claims of mismanagement.
3. Potential legal claims under Massachusetts law: Chapter 93A - Consumer Protection Act. Under Massachusetts General Laws ch. 93A, consumers are protected against unfair or deceptive business practices. Debt settlement companies are explicitly covered.
Possible 93A violations include:
- Failing to communicate significant account developments,
- Mishandling or neglecting your account,
- Allowing a charge-off without informing you,
- Misrepresenting their services or efforts,
- Ignoring reasonable requests for updates.
Under Chapter 93A:
- You may be entitled to double or triple damages,
- Plus attorney’s fees,
- If the conduct is found to be willful or knowing.
A 93A demand letter is typically required before filing suit.
4. Regulatory complaints you can file: If JGW is not responding or is mishandling your account, you can file complaints with:
- Consumer Financial Protection Bureau (CFPB)
- Massachusetts Attorney General’s Consumer Protection Division
- (Optional) Better Business Bureau to create a public record of the issue
These complaints often prompt faster communication from the company.
5. What to gather before meeting an attorney: Collect the following:
- Your contract with JG Wentworth
- Payment history and deposit records
- All emails and messages showing lack of response
- The charge-off notice from the creditor
- Any account summaries or portal screenshots
A Massachusetts consumer protection attorney can evaluate:
- Whether JGW breached its contract
- Whether you have valid claims under Chapter 93A
- Whether you’re entitled to actual damages + enhanced damages
- Whether arbitration or litigation is required
Thank you! May I copy and paste this into a Word document, or can this conversation be emailed to me?
You can copy it, yes.
And you’re welcome! Did that help clear things up?
This was very helpful. I know I have a ways to go, but you pointed me in a clear direction. Much appreciated!!
Great! If you ever need anything else, don’t hesitate to ask. Have a fantastic day!
Thanks!! Enjoy the rest of your day!!
Very welcome, glad I could help!
Jon
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