Posted on
July 30, 2009
at
12:13 am
I am looking for a debt reduction or debt consolidation company that can help me take care of my needs, but at the same time i hear a lot of hoopla saying that these guys are scammers and everything. i decided to look at it on the opposite side of the fence and find out if indeed the debt reduction services complaints i hear are legitimate. could you care to cite some examples of these please?
Posted on
July 30, 2009
at
2:26 am
Here are one of the many debt reduction services complaints circulating around the industry:The FTC filed a lawsuit was filed against AmeriDebt Inc in 2003 for misrepresentation; specifically, they misinformed their clients on the costs and nature of the services they offered. The company immediately enrolled their clients on debt management programs and never offered them credit counseling programs. They also claimed to be non-profit and asked for "voluntary contributions" from their customers. Two years after the lawsuit was filed the company shut down. Additionally, they returned $13 million to their former clients.
Posted on
July 30, 2009
at
2:42 am
Isn't there actually a company called Debt Reduction Services? I thought you were referring to that company in question, so I decided to do a little research on them as well.Debt Reduction Services complaints from the BBB totaled to 9 responses within the last three years included: product issues, service issues, billing / collection issues, and contract disputes. Thankfully all of these complaints were resolved by the company.
Posted on
July 31, 2009
at
2:33 am
How have they fared on the BBB rating?Has anyone here had an encounter with Debt Reduction Services, anyhow?
Posted on
July 31, 2009
at
3:09 am
Debt Reduction Services does not have any rating with the BBB.Here's another example of debt reduction services complaints: the company Express Consolidation received complaints from their customers after being misinformed of the company's costs, benefits, and non-profit status. They were required to pay an administrative fee each month and another unnamed fee that was to be paid on the first due date. Customers who requested not to be contacted still received calls from the company, as well as those who were on the DNC list.
Posted on
July 31, 2009
at
3:10 am
Does anyone know about the Kevin Trudeau case? Apparently he's received complaints on his debt reduction scheme, too. Anyone fill us in on that?
Posted on
July 31, 2009
at
3:27 am
As far as I know he was charged by the FTC many times for making fradulent claims on the products he sold via infomercials. He claimed that he had miracle cures thru all the medicines he peddled thru television. Complaints from the unwitting customers poured in and they were able to receive their money back as a result of the claims filed against Trudeau.He's even tried to attempt debt relief. For more, check it out here. http://www.destroydebt.com/forum/t/6888-eliminate-debt-kevin-trudeau.html
Posted on
August 6, 2009
at
3:12 am
Who else should i watch out for? Any more news on complaints?
Posted on
August 6, 2009
at
3:23 am
Jubilee Financial Services, a California-based debt negotiation company, was banned from operations in 2003 by the US District Court of Los Angeles. The company was said to have used the clients’ monthly payments to pay for its co-affiliates’ operating expenses. Most of their clients ended up filing for bankruptcy. John Gustavsen, Jubilee Financial Services’ president, was served with a court order to give up his estate and other assets to satisfy a $2.6M judgment.
Posted on
August 6, 2009
at
7:39 am
A lot of debt reduction service complaints stem from the fact that clients continue to receive collection calls while they are enrolled in the program. Also, a lot of clients think that percentages are guaranteed- they are not! Debt settlement is the process of negotiation- so percentages and results really depend on who the creditor is and what their internal policies are towards that process.
