The State is stepping in to help former customers of a debt management company

LAFAYETTE, Ind. (WLFI) - A Lafayette debt management company closed its doors this month and now, the Indiana Department of Financial Institutions is stepping in to help customers.

With the closing of  Debt Doctors on State Street in Lafayette earlier this month, payments made by customers have not been applied to their debts.
    
DFI Consumer Credit Division Supervisor Mark Tarpey said the president of Debt Doctors, Norm Neiburger, died from cancer on June 3, 2012. He said because customers were left hanging, the DFI will be investigating claims from customers.

"If they believe payments have been made to Debt Doctors or automated clearing house authorizations through their depository have been taken from the account and not applied to their creditors' debts, the customers' debts to the creditors' account, then they can notify us," said Tarpey.

Under a $50,000 surety bond, the DFI could file a claim to receive some money on a customer's behalf.

"They can notify us by providing a copy of their customer debt management agreement with debt doctors along with any information on payments that they believe have been made by them and have not been properly applied to their account," said Tarpey.

No one knows how many customers of Debt Doctors in Lafayette are in danger of being summoned to court by creditors.

Terry Buneta of Lafayette says Debt Doctors hasn't made a payment on her credit card since November of last year. But the Indiana Department of Financial Institutions or DFI is stepping in to help other customers like Buneta

"They take money out of my check every two weeks and then, you know, to get a summons to go to court because they haven't paid my credit card in 6 months," said Buneta.

Buneta hopes to see some of that money.  She had to make a court appearance earlier this month.

"I want somebody to do something about my credit card. I don't feel that I should have to pay court costs and legal fees," said Buneta.

The judge gave Buneta a month to figure something out. She says she immediately requested the proper forms to make a formal complaint to the state.

To file a formal complaint, click here.