Federal Debt Relief System

Federal Debt Relief System (FDRS) claims to offer debt relief education membership and began business May 20, 2005, according to the Better Business Bureau (BBB). Soloman Bieber is the principal and manager. Two locations are shown for FDRS.  One office is located at 6362 Hollywood Boulevard, 4th Floor, Hollywood, CA 90028 with a telephone number of (877) 943-8600. The BBB says that mail sent to this address has been returned, and that they have been unable to locate the company or principals.  A second office is listed at 915 West Trimble Avenue, Berryville, AR 72616-4614 with the same phone number as the Hollywood, CA office.  Mark Cella is the principal and managing director for the Arkansas office. 

The Better Business Bureau rates businesses from A to F and has given Federal Debt Relief System an F rating. The BBB states that the reason for this rating is that this business has numerous unanswered complaints, questionable advertising, and has not followed licensing or registration requirements. In addition, the BBB states that though their website appears to have an association with the U.S. government, they are not. 

A total of 127 complaints have been filed against Federal Debt Relief System.  The complaints are as follows: 

26 for not refunding full refund as consumers requested

1 for making only a partial refund



34 for not performing according to the contract

4 for refusing to make an adjustment

29 for refusing to adjust and relying on agreement terms

33 for not answering complaints 

Customers stated that FDRS misrepresented themselves and did not pay or attempt to negotiate with any of the client’s creditors, as promised, and many customers were still sued by their creditors for the full amount of their debt. 

The Better Business Bureau has not accredited Federal Debt Relief System, and they know of no government action that has been taken against this company. 

The Better Business Bureau in almost all cases remains neutral in their listing of companies.  In this case the BBB advises consumers to proceed with caution before doing business with this company.  A quick search on the Internet will turn up dozens of complaints from former clients who claim the company does not fulfill the promises made when they enrolled in the program.  The debt settlement industry is one that must be navigated with extreme caution as there are many companies advertising programs that claim to help cash strapped consumers.  While there are in fact several legitimate companies operating in the industry this company does not appear to be one of them based on their current reputation. 

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