Complaints

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• Initial Complaint

  Date:29/11/2023

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I entered into a debt counselling program with New Leaf in January of 2023 to help me clear some consumer debt. At first I thought this program would help and I was aware my credit would be impacted negatively. What was not explained to me was how negatively it would be impacted.
  New Leaf never followed up with creditors to confirm they received payments and as a result multiple creditors reported I made zero payments in 2023. This had a devastating impact on my credit. So much so that I cannot renew my mortgage and am on the brink of becoming homeless.
  I had brought this up in writing to New Leaf on multiple occasions and they brushed me off multiple times.
  I have recently reached out to the executive director Samycha ****** ******* to assist me and she refuses to respond.
  I signed up for support, advocacy and debt relief. I received debt relief a crippling credit impacts.
  This company has made no effort to assist and their unwillingness to respond is disappointing and should be investigated by the BBB.
  I asked New Leaf to contact the creditors and they refuse
  Please help me so this does not happen to another family.
  I am asking that they correct my credit file and fix the negative marks immediately so I can secure a mortgage in 2023

  Business Response

  Date: 14/12/2023

  Dear Sir or Madame:
  
  This letter will serve
  as a formal response to your office’s correspondence regarding the above
  referenced case. We have reviewed the aforementioned client’s file and we would
  like to clarify this situation by offering you the following background information,
  as well as our position regarding the status of this matter up to this point.
  
  New Leaf Debt Solutions,
  Inc. (New Leaf) is a national, non-profit credit counselling agency.  ***** *** ********* ** ***** *** ************ *** ******** **** ******** ****** ****** **** **** ************ ********* *************  *** **** **** ********** **** ** ********* ********* ********* ** ******* *** ********** ******** ** ******** ** ********* ** * ******* ******  *** ********* ** ********** ********* *** ** ******** ** **** ** *** **** ************* ******** ******* ** *** *********  ** ********* *** ****** ******* *** *********** ***** *** **** ******* *** *** **********  ** ******* * ******* ******* *** *** *** *** ******** *********** *** ********* 
  
  The Client initially engaged
  the services of our organization on June 14, 2022 in order to receive
  assistance in fulfilling the debt obligation to the Client’s creditors. The Client
  ceased communications with New Leaf, then we next heard from the Client on
  December 9, 2022. The Client indicated their struggle due to additional debt
  taken on and wants to explore [program] options again, concerned with possibly
  losing their house, essentially without swift intervention. Upon receiving all of the necessary information to properly
  process the Client’s file, we immediately contacted the Client’s seven creditors
  and made arrangements that would allow the Client to make one monthly payment
  through our office and be able to re-pay the enlisted total debt, at a
  significant reduction in interest charges to three of the creditors and the
  remaining ones completely interest-free. The Client’s first payment was due to
  our office by January 11, 2023 and the final payment was dispersed to the Client’s
  creditors on October 25, 2023.
  
  The Client has alleged that New Leaf Debt Solutions,
  Inc. was contacted repeatedly regarding
  the concerns of the complaint and New Leaf took no action.
  
  On June 13, 2023, the Client submitted a query for
  information stating their mortgage broker inquired about the contract with New
  Leaf and advised that the creditor payments are not being reported on the
  credit file and all accounts are showing as R9 and R7. Our Representative
  replied to the Client advising that some creditors while on the program, do not
  report payments until the end of the program. Later that day, the Client
  inquired how to go about paying off the program creditors in full as there is a
  risk of not getting a mortgage and losing their house due to negative
  reporting. The following day we called and spoke with the Client who is aware,
  the program would impact their credit negatively but was unaware that payments
  would not have been reported by some creditors. 
  We informed the Client that we do send creditors a balance verification
  letter once an account is paid in full, and we can forward them to the Client
  as soon as we receive them from creditors so that the Client can file a dispute
  with the credit bureaus to update the report to account paid in full. Our Agent
  dialogued with the Client in detail regarding their upcoming mortgage renewal
  and offered the assistance of a Specialist from an
  ********* ********* ***** who can reach out to the Client and discuss options in
  getting help with a mortgage loan. Decisions on extending any credit rest
  with the creditor, and New Leaf Debt Solutions, Inc. cannot impact those
  decisions.  We can, however, identify
  potential creditors that may help Clients achieve their goals such as home
  ownership etcetera.
  
  On July 12, 2023, the Client submitted a query stating the
  expected call back never materialized and expressed regrets in signing up for
  the program as, since doing so, the credit score has dropped 100 points.
  How a Client repays their debt on the debt management program
  also has significant bearings on the credit score. The Client’s June payment
  was not honoured by the Client’s bank and it was never made up but skipped.
  Fast forward to October 2023, by the payoff was received by New Leaf, the
  Client had skipped the August payment as well as the September payment; there
  were altogether, four non-sufficient payment activities and only one of those,
  the July payment was made up. Consequently, three of the Client’s creditors
  dropped the program and those accounts had to be withdrawn for the Client to
  manage. During this period of time, we have been in constant communication with
  the Client. Following the disbursement of the payoff on October 25, 2023, we
  sent the Client the program completion letter.
  
  On November 20, 2023,
  we received an email from the Client indicating essentially that two of the
  enlisted creditors did not show receipt of a single payment. On November 21,
  2023, the Client insisted on written communication only and we obliged. The
  then Director, responded to the Client that we understood their frustration and
  are working diligently with the two creditors regarding how they reported the
  Debt Management Program payments to the credit bureau(s). The Director informed
  the Client that we are awaiting a response from the Client’s creditors and
  would follow up with the Client once received and encouraged the Client to
  contact Client Services for an update in the meantime. 
  
  On November 28, 2023, one of the creditors replied
  that they have updated both ********** and ******* to reflect “NIL balance”
  however updates can take thirty to sixty days to show on Client’s credit
  report. On November 30th, 2023 the other creditor replied that the credit
  bureau will be updated. The Director requested a timeframe for the update to
  reflect on the Client’s credit bureau and the creditor did not respond. A
  follow-up fax was sent to them on December 11, 2023. In the interim, we sent
  creditor paid in full letters to the Client along with individual payment
  history for the two creditors to aid in credit bureau dispute if still
  necessary.
  
  While it is typical of
  the creditors to re-rate the debts on the program, it is by no means
  consistent. How the creditors report to the credit bureaus is up to them and
  varies from creditor to creditor. As well, these ratings may change over the
  course of the program according to their practice/internal policy.  This is not something that New Leaf can
  affect.  New Leaf Debt Solutions, Inc. does
  not report to the Credit Bureaus nor resolve credit bureau report issues.  Our Client agreement which is signed by the Client,
  states, “Entering into a debt repayment program may lower your
  credit rating or credit score. Your credit rating is used by lenders and
  creditors, insurance companies, landlords and potential employers to assess
  applications for items such as loans, lines of credit, credit cards, insurance,
  apartment rentals and employment.” And as well, in the disclosures
  that “The Client understands that the Client’s participation in a Debt
  Management Program may affect the Client’s credit rating either favourably or
  unfavourably …”.
  
  We understand how the Client
  may feel regarding their credit worthiness and while this is important, our
  program is designed to assist with becoming debt-free and being in a better
  financial position at its conclusion. The Client has benefitted from repaying
  the enlisted debts at substantially lowered interest rates and in some instances,
  completely interest-free which amounted to significant savings compared to
  paying on their own at the initial contractual rates that the Client had with
  their creditors; this and becoming debt free have a much larger impact on
  credit worthiness over time.
  
  We are happy to have had
  the opportunity to assist the Client with their financial situation.  We
  do not feel that any error was made on the part of this organization and do not
  take culpability for the credit reporting actions of creditors.
  
  New Leaf Debt Solutions,
  Inc. has a long history of providing a quality service and has an excellent
  reputation.  It is our policy to endeavor to resolve any dispute to the
  satisfaction of all involved. We appreciate your bringing this Client’s
  concerns to our attention.
  
  If you have any
  questions, please do not hesitate to call me.
  
  Sincerely,
  
  E. H.
  Executive Director