Hi all — I’m in a tough situation and hoping for some guidance.
Someone I know is being threatened with legal action if they don’t cancel a dispute they filed through a loan service. The message states that if the dispute isn’t withdrawn within 24 hours, they’ll submit signed contracts, call recordings, and digital logs to the loan company’s fraud team, pursue legal action for breach of contract and reputational harm, and refer the case to collections for the full amount plus legal fees.
Here’s how this situation unfolded:
There was a 1-on-1 “consultation” where high-pressure tactics were used to push a $7,000 online program. The individual was told that not buying it meant they weren’t serious about their financial success. During the call, they were instructed to use a loan app they didn’t fully understand and to inflate income numbers in order to qualify. They signed onboarding documents, but the other party never signed in return. A refund was implied, but others were later told no refund existed.
After trying the program, it became clear it wasn’t worth the cost. Multiple people reached out to customer support but received no reply—until disputes were filed. At that point, responses became aggressive and legal threats were made unless the disputes were retracted “amicably.”
The person has contacted the loan company (in this case, Affirm), and was told to wait 60 days while the dispute is reviewed and to send documentation to customer support, which has been done.
The main question: What’s the best way to respond to a demand letter like this, and are these types of threats enforceable or just scare tactics?
Location: NJ