Hi,
I think that it can absolutely be the case that participating in therapy can be harmful. Therapy is, of course, intended to be beneficial, but like most treatments for issues relating to mental health, participating in therapy has risks, and even therapy that's mostly beneficial can affect those receiving the therapy in negative ways some of the time. Much of what I've read about therapy from various psychologists suggests that one of the most crucial predictors of how helpful therapy will be is the relationship that the therapist has with his or her client. Making sure that therapy clients receive the form or forms of therapy that are best for them and for any mental health problems that they might be experiencing is also important, but a lot of experts seem to suggest that a "good fit" between a client and his or her therapist is more important than anything else. If the fit between a client and his or her therapist isn't good, then not only can that reduce the likelihood of therapy being helpful, but that can also increase the chances of therapy affecting the client in a harmful way, even if that's not what the therapist intends.
At any rate, I think it's good that you and your current therapist have come to acknowledge that some things that your previous therapist did were likely affecting you in harmful ways, and I hope that you'll find your experience with your current therapist to be better than what you experienced with your last therapist (to say the least).
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