Company That Prevents Car Repos Not Living Up To Claims?

By Tony Lopez

SACRAMENTO (CBS13) -- The Better Business Bureau (BBB) is putting out a warning tonight about a Folsom company that, customers say, promised to lower their car payment.

Mihayla Sviston says that after paying $400 she got nothing in return.

After taking a pay cut and dealing with a sick mom, Mihayla struggled to make her car payment and turned to a company called Hope for Car Owners. But she lost hope when her lender threatened to take away her car.

Struggling to make the $429 monthly payment for her Honda, Mihayla says the company Hope for Car Owners promised they could get her lender to cut her car payment in half.

"They totally guaranteed they could do this: either lower the monthly payment or the interest," said Mihayla.

She says that during the process, they gave her strict instructions.

"Don't talk to your bank. Ignore their calls, and if you can hide your car, hide your car," said Mihayla.

The company's website claimed a 99% success rate, and said it was "putting real money back into clients pockets." But Mihayla says she questioned why she should stop making her car payment.

"They told me if I was making the payments, it would be worse for me because the bank would believe I had the money," said Mihayla.

After two months, the company didn't negotiate a better loan. In fact, she says her bank threatened to repossess her car. That's when she told the bank that Hope for Car Owners was working with them on her behalf.

"He said, 'I don't know what you're talking about,' we have never heard of this company," said Mihayla.

After receiving 20 complaints, The Better Business Bureau has given the company an F rating, saying people pay upfront fees, but little happens. And, in some cases, get their cars repossessed.

"Ultimately the big rub in all of this is that it didn't work," said Gary Almond, a BBB spokesperson.

But Hope for Car Owners owner Patrick Freeman says his company never advised anyone to stop making car payments or to hide their cars. And even though his company's website is carloanmod.com, he says he says they are not the institution that modifies loans.

Mihayla's feelings have changed about the company that offered her hope.

"It's a scam," said Mihayla.

Mihayla managed to get caught up on her payments and keep her car, but wants a refund. The owner has not responded to CBS13 about her particular case, but its contracts do state the company does not guarantee any outcome.

The BBB says you should never pay money upfront, and never avoid your lender.