Throughout the last couple of years, I’ve had some bad decisions. I decided to start using my credit to work for me, and to buy things which I couldn’t afford. Partly this was because I had a horrible ex, who I thought I should do things for, and partly because of just living outside of my means for a certain period of time.
The long and short of it is, I’ve gotten myself into a bit of credit card debt. I’m not in any big trouble, just needing to pay it down so that I can get on with using that money for other things. There is a couple of web applications that I have in the works which will help me remind myself, but that’s neither here nor there at this point. So, I have all of this credit at high interest rates, surely there is someone out there that will look at my credit and finance it at a lower rate, make some money off of me, right? I’m thinking that what I need is a consolidation loan - something to lump together my credit card debt and give me one monthly payment. What I call this, is debt consolidation.
Thinking we are in the age of the internet, I type “debt consolidation” into google and give it a try. This is my first mistake. Apparently “debt consolidation” doesn’t mean that you are consolidating your debt, it instead means that you are going into what I would call debt negotiation. This means you decide of your own volition that you are going to stop paying your bills, and try to negotiate with the credit card companies to pay off your debt at a fraction of your actual debt. But I don’t know this, so I nievely fill out a couple of forms at “debt consolidation” sites. This gets pretty long, so I put in a break. Read on, MacDuff.
The Scam
The first people who got in contact with me were some people from Credit Solutions. Let me be clear on this: I’m not making broad generalizations about the company here - I can only speak of my own experiences. The person who I got on the phone went through a whole spiel, “explaining” how it works. He was very high-pressure and very fast talking, just from the start I didn’t want to buy anything from him because he seemed like a used car salesman who decided that it was better to make money from nothing than from goods.
Here’s the explanation he gave me: You’ve probably been paying your cards down already, so you’ve paid 70-100% of the cost of your original loan. You stopped paying your cards, wait 3 months, and then they start negotiating with their “powerhouse lawyers”. Then they negotiate you to pay your debt at 40-60% of the current balance, and the credit card companies get to take the remaining 40% as a tax loss.
Now is when the math gets strange. The man on the phone attempted to say that this meant that the credit card company got 140% of the current balance. This doesn’t make sense to me, especially because I’m a smart credit card consumer, and most of my debt is on 0% APR promotional rate cards. This means that they have made at most 3% of the balance from me, based on balance transfer fees. The man on the phone tried to dance around the issue, saying that they actually will get the 40% tax loss and that means they’ll still get 140%. 140%? This doesn’t make sense - 60% plus 40% is 100%, not 140%. Lets add to this that a tax loss is not the same as profit: a tax loss only gets you like, 30% of your loss.
At this point, I’ve decided that I’m being taken for a ride already, but I ask how it works anyway. Here’s how this particular company is setup: I pay into a savings account (of my own), automatically deposit around $200 a month, and they take money out. For the first three months, they take the WHOLE amount. After that, they take half the amount, and leave the other half. They then start negotiating with your creditors, and when they make a deal, they tell you “pay them now”. In the end, they take 15% of the settled cost of your debt. On $6k settled debt, this is another $900.
I really didn’t want to do it now, mostly because of the high cost. The man kept coming back to my objections with “you can’t borrow your way out of debt”. Of course you can’t borrow your way out of debt. That’s stupid. I wasn’t planning on borrowing money and then ending up with less debt. I was planning on borrowing money so that I’m not paying so much in order to have the debt. Apparently he thought I was an idiot, because he kept repeating it to me.
He sent me a little packet of stuff, which laid out the whole plan. After that, he gave me a call back. This is when I got really defensive. I asked him point blank: “What is the worst thing that can happen to me if I go with this plan?” His answer: “You stop paying your bills.” On the surface, this is true. The worst thing that can happen is that I stop paying my credit card bills. He neglected to mention the fact that ceasing payment on my credit cards would ruin my credit, cause insane fees for lateness, and possibly send me to forced arbitration with the creditors. Every creditor that I have ever had since 2002 has had an arbitration agreement, which basically would end up in garnishment of wages.
The Scum
About a week after my first bad experience with a debt “consolidation” company, I got a second call from a completely separate company. They introduced themselves on the phone as “Christian Financial Services” or some such. Basically the same deal, but this was a low-pressure sell instead of a high-pressure sell. He was much more reasonable, and talked me through the whole thing at my own pace, taking his time to lay everything out that I could understand it. It was basically the same deal, 15% and they negotiate for you, but they set up an escrow account instead of you doing it yourself.
When I asked the same “worst situation” question, he gave me a realistic outlook, and this company is in a much better standing. If the creditors don’t like their negotiation and take you to arbitration, you actually get representation from their company to help you out. I was almost willing to do it.
Then I went and looked at their actual company online, and discovered that they are a chamelon of some sorts. They were originally called something similar to “USA Debt Consolidation” or something otherwise patriotic. Apparently they decided that God could be on their side, at least it’s good advertising. What good company has to change their name to get religion on their side? A good company would not need to change it’s name.
The Sweet
Some people have gone with these companies, and they have actually negotiated with the creditors in order to pay off your debt at a fraction of the price. If it happens, that’s the sweet part of this. Just given an example of $10,000 credit card debt, it is possible to pay around $6,000 and have all of your debt paid off. It’s basically saying that you can spend money that you won’t have to pay back, ever. There is some hit to your credit rating in the short term, but in the long term, it starts going the other direction. The hard part is finding a company who will do this and who you like.
I had an even harder hurdle to surmount - I don’t really believe that it is ethical to do this. I spent the money, I should pay it back - that’s the deal I made with the company when I signed up for the card. To me, I need to go through with paying them back. Luckily, I came into this with a decent credit rating, and will probably go out with a similarly decent one. Right now, I am a prime target for anyone who wants to give me a large loan at a decent rate - if I can pay less for the money I spent, I’m savvy enough to do it.
The Alternative
There is one other option which I looked into, and will represent the only company that I will link through this diatribe: Consumer Credit Counseling Services or Money Management International are truly non-profit and have good word-of-mouth from anyone I have talked to. They will not negotiate to settle your debt, but they will work with the creditors to get lower percentage, and help you through your budget. The couple of talks on the phone that I had with these people were very productive, and I got some stuff in the mail to help me out. You pay down the entirety of your debt. The downside is that you get a good size hit on your credit rating.
My Choice
In my position, I decided that I was on a good track myself already - I’m paying off my cards smartly, taking the highest APR out as quickly as possible. On my current plan, I will be completely debt-free in 3 years, less if I get some windfall of any sort. One of the bonuses of having a good credit rating is that people are willing to loan me money at promotional rates for some amounts of time. When my promos run out, I play financial musical chairs and get the lowest rate on all of my money. That’s just for me though, to each his own.
The most important part in all of this is that I got control of my budget, and started living within my means. My punishment for living outside of my means for so much time is that now I have to live well within my means. I have to live within the means set upon by having to pay a large chunk of each paycheck to the creditors. Once I’m outside this, it will be much easier for me to have lots of happiness and savings.
Comments 50
I just wanted to say that I’m glad you posted a cation sign to people out there so they can be smart about their decisions. There are so many scam artists out there that’s it’s increasingly important. However, I just wanted to let you know that I had a very postive experience with Credit Solutions, my gal was low pressure, and I got my $14,487 reduced to $6,722! That’s after they tacked on their fees. My situation was a bit different though in that I had 23% APR’s and you had 0%, and I am a starving (literally) student trying to get out into the real world with a fresh start. It’s not for everyone, but it was the best solution for me. I was debt free in 19 months.
Thanks again for your column.
Posted 31 Jan 2007 at 12:46 pm ¶hey i signed up with credit solutions and now i am worried that they are a scam?? what is your experience with them?
Posted 21 Mar 2007 at 5:22 pm ¶This question is to Alex or whoever has the answer. How is it that people are able to pay the settlement (in one lump sum?) if supposedly the reason you seek consolidation in the first place is because of hardship. Or do you then have to get a loan for what ever the credit card companies settled on? But who would lend you money for a good apr % with the banks now knowing that you are a risk? This column was very informative but I’m stuck on that question.
Posted 31 May 2007 at 9:13 pm ¶I don’t know anything about Debt Consolidation and I’m interested to read the answer of Anna’s question.
Posted 20 Jun 2007 at 5:11 am ¶The deal, as explained to me by the people, was that you stop paying whatever you’re paying your credit card companies, and instead pay into a special savings account that they take their fee out of, and eventually the lump sum settlement out of. Mind you, for the first three months, they take every cent you put into that account, and after that they take a percentage as well.
That’s why consolidation is in quotes in the title: it’s not consolidation. It’s negotiation and settlement.
Posted 21 Jun 2007 at 2:38 pm ¶WHAT I NEED TO KNOW IS WHO DO YOU GO TO WHEN YOU ARE STUPID ENOUGH TO RELY UPON THE SHARKS (DEBT CONSOLIDATION LAWYER). THERE IS A COMPANY OUT THERE THAT USES SEVERAL DIFFERENT NAME BUT ARE THE SAME COMPANY AND WHEN ONE OF THE NAMES GETS A BAD NAME THEY SHUT IT DOWN AND USE ANOTHER NAME.
Posted 12 Aug 2007 at 9:17 am ¶On or about May 2, 2007, out of pure desperation and despair I, Samantha J. Nackab, contacted Credit Solutions to help me with my recently overwhelming debt. Due to a horrible, mentally debilitating divorce I was left with about twenty five thousand dollars of debt which coincidently was mostly my ex husbands charges. Needless to say that because I do not make enough money on a monthly basis to pay more then the minimum amount due, I turned to “Credit Solutions.com” to help me to “eliminate” my debt. (Or so I assumed)I spoke to a gentleman from the company by the name of Jim who promised me that “within six months my credit will be MUCH BETTER then it will be if I continue to make late payments, the way that I have been for the last few months. He emailed me a package and I read it thoroughly and faxed the documents to his attention with a note “thank you for saving my sanity”.
I made sure that I followed the instructions stipulated in their credit portfolio package which directed me to mail out, certified mail, the affidavit advising my creditors that Credit Solutions will have a limited power of attorney with regards to my bills. I advised my creditors verbally that as per my new credit service program, I am not permitted to speak to the creditors and instructed them to contact credit solutions at the 800 number listed in the package portfolio I was supplied with.credit solutions drafted the first payment of $363. dollars out of my checking account on 5/2/2007, as I was told they would. They drafted $363. on 6/2/07 as well as 7/2/07 and on 8/2/07 they started drafting $163.00.
I was promised a monthly follow up call to see how I was doing and to help me with my “savings” or my reserve so to speak. (Monies needed to pay off creditors) No such phone calls occurred, in fact, I contacted them almost every month to see where we stood with regards to my account. Most of the time I would be told “we are trying to contact your creditors but are not getting any responses, keep saving and ignore the phone calls from the collections departments.” The people were not professional, in fact one of the women I had the “pleasure” of speaking to was multitasking while I was frantic about a letter that I received from an attorney. When I say multitasking I mean she was, chewing her food, speaking/laughing with one of her colleagues while trying to listen to me vent at the same time. When I asked what they have done so far I got the same answer, DO YOU EVEN HAVE ENOUGH SAVED FOR US TO NEGOTIATE? After I was brushed off by this “consultant” I asked for a supervisor. I was put on the phone with an educated, articulate woman by the name of Lisa who assured me that they were diligently working on my account and contacting my creditors with the hopes of reducing my debt. She explained to me that the letters I was receiving as well as the phone calls were threats from the creditors, a method used to scare people to pay them. Yet even still, there was no answer as to where I stood with them, and even more frustrating was how vague and unclear their responses were when I asked them what creditors they have been in contact with.
In the meantime, I am paying this company to help me manage my debt and reduce my balances but, they didn’t do anything except put me in more debt, lie about credit laws and practices and fill my with false promise. In actuality, I could have been paying my credit cards with the money that I paid credit services. What did they do to earn the $1252.00 dollars that I gave them? What services did they provide me? Nothing. I sent them letters that I received from attorneys, collection agencies and other creditors, with the hopes that they would help me set up some type of payment plan with the companies who I owe money to. Nothing. I faxed them every time I had a summons to appear in court due to non payment of my accounts (XXX)XXX-XXXX. Not one time did I get a phone call back from them. Please help me.
(ed: removed phone number as it’s ambiguous as whose it is)
Posted 07 Sep 2007 at 9:29 am ¶I too got scammed by Credit Solutions until last month. I payed them nearly $1000 to do the same thing. Guess what, I got a different answer everytime I called them and was told that everything would be fine. I too got lawsuit summons ‘3′ to be exact. That’s when I woke up and relized I was being scammed. I contacted CS and asked for money back. They responded by saying “my manager will be in contact with you in 5 to 7 business days. Never heard one word. It’s been 3 weeks and still not one word. I recently saw a news story in my area that this same situation happened to another lady and she got her an attorney to get her money back. I am currently trying to contact that same attorney. We’ll see what happens. I did however just sign up with CCCS. But it is going to take 4 years for them to get me out of my debt problem. I sure wish I had researched that company better.
Posted 14 Sep 2007 at 1:02 pm ¶I’m in the process of reviewing Credit Solutions’ “enrollment package” right now. I’ve read and re-read it but I can’t seem to click on the e-sign button. I’ve also tried to find some reviews on the Internet and luckily came across this article. I was very weary about this company from the start however, I am in desperate need of paying off some credit card debt. On their website, they have links to news coverages from ABC to NBC and CBS. I watched them and the news anchors all feature the same guy who’s doing business with Credit Solutions and they’re all saying the same thing. On one video it’s a man and on another it’s a woman. Is this possible where different networks cover the same story with exactly the same words? I’m pretty sure I’m not going to sign that “enrollment to more debt.” I don’t think it’s a risk worth-taking
Posted 21 Sep 2007 at 4:19 pm ¶Hi Samantha…
I was thinking about using Credit Solutions, but after reading your story I’m seriously reconsidering. It’s so hard to decide whether to use one of these services because as you know, you’re putting your life in their hands. Have you had or heard anything from them regarding your settlements? Please respond to my personal email: hdolby@cox.net
Thank you
Posted 25 Sep 2007 at 9:57 am ¶Donnie, honestly I think you are in state of panic. Please read the contract and instructions they have given you. I am on the same program and just got off phone with Lisa who called me. I signed up February 01, 2007. Today, I paid off 2 credit cards out of 4 at 30% of ammount due. You don’t need to work out on a payment plan with your creditors, CS negotiates with them. I when they reach the settliment they will call you. Follow instruction as they told you, and calm down. I was suspicious too.
Posted 27 Sep 2007 at 12:11 pm ¶But, they settled on cc for $1,136 out of 3,787 balance and the second cc for $1,989 the balance was 5,989 wiht 29% interest and high monthly payment that I could no longer afford. I am very happy with what they are doing for me. I had no way out ot debt ($27,000) I could not even make payments.
I was considering Credit Solutions and looked at their BBB report, it is horrendous. They have 757 complaints and an “unsatsifactory” rating. I found another company called Freedomdebt.com a local TV morning show. Apparently freedomdebt.com appears on TV shows all over the country and they are actually BBB memebers with a very good record. The representative I talked to was polite, but pretty “blunt” about the pros and cons of the program and didn’t pressure me to sign with them. My wife and I decided we are going to go that route, I can never seem to afford to pay more than the minimum payments and see no end in sight if I don’t do something.
Posted 24 Oct 2007 at 8:40 am ¶I’m glad I ran into this page. Last year I helped my sister get an apartment for her and her 2 daughters, and I helped my brother purchase a car after his accident, so he could find another job. The old saying, “you shouldn’t lend money to family” came back to haunt me. Now I am in trouble, and have nobody to help me.
Posted 26 Oct 2007 at 7:46 pm ¶I emailed Credit Solutions a few days ago, and got a reply email. Since then I’ve gotten several phone calls and emails from them. I don’t want to negotiate my debt. I want to consolidat it and PAY IT OFF. Unfortunatley, now my credit rating has taken a blow and I don’t see anyone willing to consolidate my debt for me.
Beware of Credit Solutions of Texas!!!! I contacted them about some information on their program last week. When the debt consultant told me to get online while we were talking, I told him I couldn’t sign up until I talked to my husband about the program. He reasured me that I wasn’t signing up for the program and that I had to have my husband’s permission anyway since he was on some of the credit cards. My understanding was that I was signing up for a preliminary account that I could later get on and enroll in the program. He also told me to call him later that evening so we could finalize things. Later that day after finding some not so good reports about them online we decided not to enroll. I tried to contact the debt consultant back that evening to tell him we decided against enrollment. I could never get a hold of him. I always got his voicemail and when I e-mailed him I’d receive e-mails back that said his e-mail address was no longer valid. To make a long story short we just ended up getting a bank draft from them today for $275! We never even agreed to the program!!! He signed me up with out my consent!
My big mistake was that when I was doing th “preliminary” online account set up I gave the consultant all my information. I guess I was foolish for taking his word that he wasn’t signing me up for anything. Come to find out, he had enrolled me in the program while we were online with out my knowing it. I’ve contacted the company. After being transfered and put on hold about 10 times I finally got a hold of someone that said they could help me. They still don’t understand that I didn’t sign up! They kept saying, “now, why did you change your mind about the program?” Ahhhhh!!!! I never signed up! We are still trying to get our money back. My advice is go to a non-profit program!!! The debt consultatnt I worked with at Credit Solutions was a liar. I find it interesteing that I can’t get a hold of him now either. I don’t know about the company as a whole, but I was sure scammed by one of their debt consultants. I bet he just needed his commission from enrolling me.
Posted 03 Dec 2007 at 2:10 pm ¶They scammed me too just like you. You need to contact your States Attorney General the BBB and FTC. They are in violation of section 5 of the FTC act about deceptive business practices. They also put JD Powers as reference on their web site so I would contact them too. Apparently if you can still borrow money from other creditors they cannot help you at all but they forget to mention that in the spiel. Now I now owe Chase 14,000 when I originally owed then 12,300 minus the 1300 I gave to Credit Solutions so I’m out 3,000 Dollars and am now getting summons to appear in court. I plan on making myself Credit Solutions own personal nightmare anybody else want to join me.
I DO NOT LIKE GETTING SCREWED.
Anthony DeMarco
Posted 04 Dec 2007 at 8:44 am ¶This response goes out to everyone who reads it:
I work in the Debt Settlement Industry and I understand exactly what is
possible compared to what “sounds possible”. The first thing I want to
bring to light is something called “Universal Default”. This is what is
defined in the small type on the backside of every credit card
contract. What it means is that once you go outside the original terms
of your credit card agreement, the creditors can charge whatever they
want and can put your interest rate to where ever they want. Going
outside of the original terms of your agreement can be anything from
making a late payment to going over your credit limit. However the most
common yet unseen instance of this is when your credit limit is extended
and you exceed your original credit limit but are technically still
under your new credit limit. So watch out.
The next thing I would like to talk about is Debt Settlement itself.
The only reason you should do a Debt Settlement program is if you
absolutely cannot afford, whatsoever, your minimum payment due to an
evident hardship. If you can still make your mins but just have a high
% rate, do yourself a favor… Call Credit Counseling (aka Debt
Management Plan). For those of you who fit the criteria, here is what
you need to know: To get the best settlement you must show an active
and productive effort to accumulate funds. This means you actually have to
TRY to get out of debt, rather than settling for whats easiest. The quicker
your creditor is paid, the better the settlement and the less chance
the debt has going to court. Yes, the chance of a judgment is always
evident. Which brings up my next point… PAY ATTENTION!… Never go
with a settlement company that does not actively communicate with your
creditor. This means that they do not have enough time to deal with you
specifically and that you will be placed with 100’s of other people…
70% of which will get sued and cancel not getting a refund of their
fees. This is where the companies who do this process of settlement get
paid… (Credit Solutions) So when choosing a company, bigger does not
necessarily mean better. You also want to go with a program that does not hold your funds for you but rather you set aside the amount into your own account and save the money yourself. That way you can surely see your money. Make sure to actively know the terms of your contract with them. Mainly how the fees are paid and refunded if you cancel and especially what kind of guarantee is in place… Credit solutions has a settlement guarantee that states they simply guarantee a settlement or your fees are refunded. Sounds good… Or does it? A settlement is considered a settlement even if you pay back up to 99% of your debt. So make sure they specify in the guarantee what percentage it is guaranteed up to.
After reading this, you should have a pretty good idea of what you need and what you should look for. Never take what sounds true, to be true. Remember, your the one in debt, not them. Good luck. I
Posted 11 Dec 2007 at 7:46 pm ¶I have had a horrible experience with Credit Solutions. I paid they’re insane fees for the first 3 months while they were supposed to be “working” on my case. By the third month Chase Bank filed a law suit against me for non-payment. When I told them that Credit Solutions was taking care of my debt situation and had power of attorney, they stated that they had received no such correspondence from Credit Solutions. So, of course I have to now use my “savings” to pay Chase and not Credit Solutions. And so I cancel with them. Two months later I checked my bank account as I do every morning to see that they had begun drafting monthly fees again. It was a complete run around trying to get my money back not to mention the waste of an entire day. My advice, don’t use these agencies and don’t don’t don’t give them your banking information!!!
Posted 03 Jan 2008 at 1:17 pm ¶Wow.. I’m excited and horrified to find these postings. I signed on with Credit Solutions about 3 months ago after getting advice from a friend. My alternative was bankruptcy. I am a single parent, working fulltime, and struggling to make ends meet. While attending school for the past 5 years I accrued a large debt, school loans and credit card for living expenses. Initially, the blow came when the minimum payments were increased. Then the second was when my APR went to 30% on $9000 with B of A. I was told to pay for 6 months and they would decrease my APR. Just before the 6th month, B of A removed my automatic payment status resulting in a deliquent payment therefore, according to them extending the 30% APR for another 6 months. I faught with no success, stopped paying them, transferred a large portion of the debt to another card, and they eventually settled with me for $1600 (the debt was $7000 at the time) paid in 6 months. I currently have 4 cards.. The b of a will be paid off next month, but I have stopped making payments on all of my cards and own a great deal. I’m am concerned because now my credit is not so good and there is no chance of consolidation. I’ve considered calling my creditors as I did with B of A and hoping they settle as well. I’m ready to leave Credit Solutions (luckily they’ve only drafted $235 from my account. Does anyone have advice for me? Has anyone actually filed bankruptcy? My debt is approximately $25,000.. Help!!!
Posted 14 Jan 2008 at 11:56 am ¶Dear “M”,
It is absolutely possible to settle debts yourself. However many people lack the personal discipline to actually save up for one, much less “haggle” creditors to negotiate. However, with you owing $25,000 in credit card debt that I am assuming is on several different accounts with more that one creditor, it will take a lot of consistent and challenging effort on your part. As long as you have an evident hardship in play and are able to keep record of your effort in wanting to pay them back (just in case they want to take you to court). Typically it will be most cost effective if you choose to do some sort of program. Why? Have you ever heard of the term “Strength in numbers”? One of the best things about settlement companies and the reason why they do so well, is that they are able to combine your debts with other people’s debts to obtain a much better settlement. More debt means more money. When your creditors are looking at a larger lump sum of money, especially if its a number of people that they will be able to cease collection efforts with, they will tend to accept better settlements. A company that I would personally refer you to would be: New Beginnings Debt Settlement, LLC. They have a 55% money back settlement guarantee. That means if your debt does not settle for less than 55%, you get your fees for that debt refunded. (www.newbeginningsonline.com) Cheers!
Posted 18 Jan 2008 at 5:00 pm ¶all this is scary.i have been working with credit solutions for about a month now. i haven’t paid them any money,however, they are going to be taking 1000 bucks on feb. 1st. i have been avoiding phone calls from my creditors and mailing all my hate mail to credit solutions. i have read all the testimonials and now i really don’t know which way to go. can someone enlighten us a little bit??
Posted 24 Jan 2008 at 9:52 am ¶You and me both!
Posted 25 Jan 2008 at 9:06 pm ¶I would LOVE TO JOIN ANYONE LOOKING TO GO AFTER CREDIT SOLUTIONS! CS TOOK ME FOR ALMOST $3000 in those first three months, I ended up working out settlements with my creditors. I too received two summons from chase, they were working towards wage garnishments and CS said they could do Nothing about it. They kept telling me “It will be okay, relax, etc, ect, then when I pinned them down they said it will go to arbitration or court and they will setup what you will pay, etc. They took my dough and did nothing, they lied to the one creditor’s attorney about what I offered even so I took it on myself. They never offered money back for not settling any account, however, they did get a really high offer that was about 99%, even after taking the three grand from me. They even had the nerves to ask me,on the third month mind you, when the fourth month is when you actually get to save some, if they get the settlement for $20,000 on the 21,000 debt if I could pay it. Does this sound fishy to anyone or am I the only one who couldn’t figure out how to come up with twenty grand???
I was screwed by a “business partner” to the tune of $72000 and that’s what put me in the situation, he was a mortgage guy who saw my credit and wanted to get into racing, I had great credit and he promised the world in finances, he even brought me into doing mortgages and took some of my business there as well, then charged the person I was going to do the loan for an additional $4000. I personally worked on my debt and got it all reduced to $35000, CS says they won’t deal with Citibank, I then found out that the creditors won’t deal with them! I now have my own business with Primerica which is owned by Citi Group and love it, we teach people how to become debt free and financially independant so they don’t get screwed by other companies out there like Credit Solutions.
Please contact me if you or anyone else has had issues with CS or if anyone has an idea how to get dough back from them! My email is cowbyracer at aol dot com. Let’s get these suckers!
PS, sorry for being so scatterbrained on this post, I just really get wound up about this kind of thing and being a type “A” personality I usually go 100 miles a minute! lol
Posted 03 Feb 2008 at 10:43 am ¶HEY FOLKS!!! GUESS WHAT THEY ARE STILL TRYING TO TAKE MONEY OUT OF MY BANK ACCOUNT TWO MONTHS AFTER TAKING CARE OF IT MYSELF. THEY DON”T EVEN KNOW I SETTLED ALREADY.
WOW WOW WOW
Somebody needs to go to jail with no GET OF JAIL FREE CARD. Still waiting so they can hang themselves some more.
Posted 04 Feb 2008 at 7:30 am ¶If you have been ripped off by Credit Solution then please contact me at lifesathee at yahoo dot com. Lets get together united and then hire a good attorney. We will not mind attorney to charge 25% of our winning once we sue the Credit Solution for millions. The payment will be against 1. Adding financial nightmare on the top of preexisting financial problems 2. Extreme pain and suffering caused bue to these nightmares 3. misrepresentation of facts during sale and many more…. a good attorney will figure out all.
Alok
Posted 06 Feb 2008 at 3:22 pm ¶Ok… For all those that are reading and have been played by credit solutions, READ ON:
New Beginnings Debt Settlement, LLC or you can visit http://www.newbeginningsonline.com . I am definitely not one to brag about one single debt settlement company, however these guys back what they say. Compared to Credit Solutions’ 900+ complaints with the BBB, these guys only have 1. To this date they are the only company who guarantee results. AND BACK IT UP. If they cannot settle your debts for less than 55% of your original owing balance, you get the entire 15% fees you pay for that debt. Not only that but they also contact your creditors within 2 weeks of you enrolling unlike other companies that typically wait until all your funds have accumulated to contact them. The process they use makes sense and the fact that they will settle your debts under 55% or their service is free backs it up.
On the other hand. Before you jump into assumptions about debt settlement, make sure you have thoroughly examined your situation and have called around to check into credit counseling before settling with debt settlement. (No pun intended)
Posted 08 Feb 2008 at 3:31 pm ¶i have been credit solutions since march 2007.they call when they promise.
Posted 08 Feb 2008 at 8:38 pm ¶already have 2 debt warrants.one of these isettle myself.they do not live up to their promise to get you debt.all they do is take money.got to go to court
in march.i have pay them more than a 1000 dollars.i am worst off now before igot involve with credit solutions
I agree Wally, please email me at Cowbyracer@aol.com I think that we should all band together and file a class action suit or something. I have one attorney willing to take them on for a fee of course but if we can get a lot of support then perhaps it will be good and we can all benefit! Let me know if you are interested, this goes for anyone!
Posted 11 Feb 2008 at 9:10 pm ¶Hello everyone… Just to explain a bit about what the topic of debate here is. Obviously this place has an extremely bad problem with agreeing to perform according to their contract and just about everyone is dissatisfied with their services. However, when considering filing any sort of suit, make sure to refer back to the contracts you signed before entering the program. On those contracts does it say that they will 100% guarantee a successful settlement? Or a 100% refund of fees if your not satisfied? How about Binding Arbitration? Something that a lot of settlement companies use to have you agree to not file any such suit or action against them. The bottom line is about this company is that they have way to high of a client to representative ratio. They have nearly a thousand complaints with the BBB. Thats 700 more than walmart! Don’t waste your time with these guys and read all my previous entries above… Take care of your past due debt the right way…
Posted 19 Feb 2008 at 10:53 am ¶last mth i enrolled with credit solutions with 2 credit cards…one card was accepted and the discover card was not….whats that mean? Some attorney has sent me a letter saying i owe the full amount!!!! Ive been scammed and so frustrated…what to do? any answers…i need help
Posted 10 Mar 2008 at 9:31 pm ¶omg!!! i’m going to have an anxiety attack! and i’ve been so pleased with myself for “taking action” to deal with my debt!!! arg, i feel like such an idiot! i signed up with CC in june of ‘07 and have been diligently saving money, ignoring 10 phone calls a day from attorneys, faxing all letters etc. until recently when i contacted CC to ask some ?’s and got a very un- intelligible, unhelpful (also) multitasking CC agent/ tele communications operator have i started to doubt my choice to hire this co. to help get my debts lowered… and now that i read everyones comments i see i may have made a very bad decision here. i’m going to read all the fine print and try to contact them some more to see where they are at and after that my just be interested in joining up with some of you folks in my same position to try to get some retribution, as Anthony puts it i don’t like getting “screwed” either!!! oh dear, this is a mess.
Posted 12 Mar 2008 at 4:30 pm ¶CREDIT SOLUTIONS IS A SCAM!!!! I am currently trying to get out from under the problem they created. they have no powerhouse attorneys or settlement teams. they do NOTHING to help you out!! I am now being sued by one of the companies they were going to handle for me and will end up paying double the original amount PLUS their fees. Anyone thinking of sueing them??
Posted 24 Mar 2008 at 11:26 am ¶I recently had an issue with credit soultions. The deal is this. I paid them there up fromt fee for a year and basically they dont even contact your debtors until they have enough of your money. In a nut shell, you are better off just not paying the credit card companies (which is what credit solutions is going to tell you to do anyway) and just wait for the collection people tp contact you, in which THEY WILL, and just negotiate with them yourself. I have already had all my debtors try to negotiate with me meaning that they never even spoke with credit solutions so you are better off just NOT PAYING THEM 3 grand and just use that to pay off some of your debt. I have gotten a refund from them. They only gave me $915 back of the $2,500 I have paid in. This whole thing has been a nightmare. Live and learn right?
Posted 26 Mar 2008 at 2:05 pm ¶To Credit Solutions
You told me (credit solution) you was
going to work for me to fix my debt! ! You are not doing anything,
only lies and more lies, the collecting agencies are calling and calling, telling us they are going to go to litigation or arbitration!
Where’s the 40 to 60% of cut in the debt you told me? Where’s the reduction? Where’s the consolidation that credit solution promised at first?
Our debt is much higher now in those cards that last year without using them, we paid you what you asked and we have received nothing, we owe more money now paying you and the card fees (24 apr and more) are incrementing tremendously! And you steel are collecting my money!
Why you told us we’ll save so Much amount of money and now after almost a year you offer us a settlement with the same 9 month ago amount plus your fees plus very hi interest and more fees from the bank and a personal long lasting bad credit ??
Is sad to find people that when you need more help they just
Posted 28 Mar 2008 at 4:39 pm ¶Take your money and live you worse and alone. Angy.
Just so everyone knows, it seems that CS has weaseled their way out of any sort of responsibility in their contracts. Go figure right? Anyway, in their contract it leaves pretty much all the responsibility on us and then, if it has to go to court, it actually can’t, it must be arbitrated, go figure! Anyway, their ‘refund’ policy states that you have to send them in writing any settlements that you take care of yourself which is where I made my mistake by calling them, of course when you’re a really busy person working fourteen hours a day to make money to eliminate your debt situation you don’t have a lot of time to sit down and write letters let alone call them! As luck would have it, I kept calling them because the agents just told me to keep them informed and so that’s what I did by calling them. Now, everytime I called them to tell them that my creditors wouldn’t work with them they kept telling me that that was a lie and they would so just put them off longer and they will. What gets me is they told me that they all would work with them except Citibank. Hmmmmmm, now why doesn’t Citi work with them and, if that’s true then what makes them think that ALL other creditors WILL? In the end I am out $3000 that I paid them to basically sit there and do nothing with no recourse on my end to recoup the money these scammers took from me. It’s funny how these A-hole scammers take money from those who are struggling. That’s the whole way I pretty much ended up with my $70000 in debt was from a scammer who ended up my business partner! Gotta love our injustice system where it protects the criminal! If anyone has had any luck with an attorney or anything to get their money back I would like to hear from you. I’d Join your crusade and if you know of an attorney who knows how to beat these idiots then let me know so I can contact him/her and get something going. THanks!!
Posted 30 Mar 2008 at 8:46 am ¶Mike Clark
cowbyracer@aol.com
253-861-6085
oops i just read my entry and meant to write CS (obviously for credit solutions) not CC. this company really isn’t going to help me? anyone have advice as what to do now that i have ignored my credit cards and collectors as CS has advised and now my debt has amounted from late payment fees and penalties! what’s “the right way” to get out of this? i consolidated my debt with CS because i couldn’t handle more than minimum payments and all i was paying was interest! now it seems i may be worse off than before! what to do?
Posted 30 Mar 2008 at 11:27 am ¶i jst enrolled in the program its bn like 1 week im gettting 4-6 phone calls a day from my creditors after reading all this im getting out of the credit soultions program
Posted 24 Apr 2008 at 1:03 am ¶The funny thing is they say they are talking to your Creditors and they never do. Is this or is that not lying and when you’re in contract with somebody. Are you breaking the contract if you are lying to them? And many months after I settled my debt they are still trying to take money out of my checking account and still calling me to see how I’m doing. So in a nut shell they know nothing about what is going on. It is funny? I sit here in silence all these months and they still do not know I settled the debt myself. I FEEL THIS IS FRAUD AND A SCAM PERIOD I DO NOT CARE WHAT THE CONTRACT SAYS.
Cut up your Credit cards and pay cash for everything. Work extra hours or get a second or third job and get out of the debt nightmare. If you’re a man getting divorced give your wife everything and walk away especially if you live in a liberal state. The System our legal system just takes your money too. AND IF IT SOUNDS TOO GOOD TO BE TRUE IT IS. Go through life like everybody is out to screw you then nobody will. Trust only family and your oldest closest friends. Teach your children not to be suckers and how to manage money and how to invest and how to save.
And get a prenuptial AGREEMENT BECAUSE THATS HOW I ENDED UP IN THIS MESS.
AND THE MOST IMPORTANT THING OF ALL IS DO NOT MARRY A PSYCHOPATH.
THANKS
Posted 27 Apr 2008 at 9:15 am ¶You can include me any time. We need to get involve as many people as we can.
Lets us first set up something to have people sign on who can provide their testimonies.
Posted 28 Apr 2008 at 6:57 am ¶Ok and those negotiations you couldn’t have reached yourself? I know you could have, because I have done it even being enrolled in their program.
Now I want you to add what CS has charged you in service fees to your debt
Now go back and add in the interest and late fees that were added to the original debt since you stopped paying it….
lets see they made 2 phone calls on your behalf.
Something isn’t right
Posted 01 May 2008 at 1:44 pm ¶i know it is a good feeling to pay off those 2 cards, but think about at what expense.
To “Frankly”…
Posted 05 May 2008 at 4:34 pm ¶Do you work for New Beginnings? You sure seem to push them out there. They don’t have much history on the BBB and so far two complaints that have been settled. However, it is proven that only 1 in about 93 people actually report to the BBB when there is a scam. What sort of support do you have for your theory that New Beginnings Debt Settlement is on the up-and-up?
credit solutions is a scam, I made 3 payments and i am going out of it, because they have done nothing. My bank called me and offered me low APR 7% fixed for 5 years. I think I just have to pay it back, nothing is free!. Also after making 6 payments they’r going to clear up all of my late payment history. In the first my bank didn’t want to lower my APR but after I missed few payments now they want to.
Posted 24 Jul 2008 at 11:47 pm ¶Hi all…I haven’t had time to read all the comments, but I just want to advise everyone here to stay away from Credit Solutions.
I worked there for about 8 months, and I can tell you that though they never outright lie about their product, they often shade the truth.
Credit Solutions’ service preys on the weak. As a debtor, you are better advised to deal directly with your lenders, or, if things are bad enough, file for bankruptcy. Credit Solutions program will probably just make your situation worse!
Posted 26 Jul 2008 at 4:01 pm ¶Thanks to all of you that published your experiences I was able to cancel my service with them before they took the first draft out of my account. I called for info and the next thing I knew I had an account set-up and a contract with them. Now that I told them I am cancelling within the 3 day grace period I am getting calls and e-mails saying that their BBB rating is inacurate and that all companies their size have a few BBB complaints.
Posted 28 Aug 2008 at 1:17 pm ¶Well… where do I start? I sure wish that I would’ve done more research on Credit Solutions before believing the “managers” so lies from the beginning. It was really scary to read Samantha’s blog 7. It’s almost like I wrote that and just made up a name. Word for word is exactly what happened to me! I stayed with the company for 13 months and they did absolutely nothing but take my money. In Feb. I consulted with 2 different lawyers. They both advised me to close my account with my bank and even SWITCH banks. The lawyers said that they have heard of credit solutions finding your new account info, even if you change account numbers. I had to switch banks to keep safe. 8 months later in Oct, I received a call from Credit Solutions asking “why they haven’t received a payment from me?” I told them that I was going to claim bankruptcy and I did not want to deal with their company anymore. Wouldn’t you know the rep on the phone literally BEGGED me on the phone to reconsider. He said to give them 24 hours and they can make something happen. Does anyone else out there think that their timing was a little of??? I gave them 13 months and they did nothing!!! NOW they want to help me out? NO WAY!!! I told them to put me on with an agent about getting my money back from the 13 prior months. I was connected to another agent (after 20 whole minutes of being on hold). I had to tell myself to not hang up, because that’s exactly what they want. So I sat and waited… and waited… and waited. I was finally connected to an agent and he said that he would have to call me back after reviewing my account info. I took his full name and personal extention (I was not going to fooled again by the “I’ll return your call” line). He said that he would call me back in an hour and to my surprise… he did. He said that he would only be able to give me 35% of what I paid out. HELL… that’s better than nothing. 10 days later I recieved a check in the mail. Please don’t take this as a happy ending. I am very mad at myself for even turing to someone else for help. Credit Solutions is trained to know that when you call, you are in desparate need of help. They feed on this and never feel any remorse about taking your money, not returing your calls, not checking up on you once a month (as promised), not being respectful on the phone, and DEFINITELY NOT contacting your creditors. I feel that I was lucky to have recieved anything back from this horrid company. BEWARE!!!! Head to my warning!!! By-the-way… how many BBB complaints does a company have to have before they are shut down??? They are already over a thousand, do more people have to suffer before something is FINALLY done?
Posted 04 Nov 2008 at 10:04 am ¶Hello all,
I too signed up with Credit Solutions 2 days ago. After I signed up I decided to do some research on them…OH MY GOSH! They’re horrible! Luckily I’m still in the 3 day grace period for cancelling so I faxed over my cancellation request and mailed the original today. I then called to make sure that my account would be cancelled. I was put on hold for short periods of time and then the gal would come back on and tell me they were “reviewing” my account to make sure everything was deleted. Finally, the nice representative told me she would e-mail me a confirmation of my cancellation…and she actually did!
My advice to anyone who wants to cancel with them is to 1. Place a stop payment on your bank account for any ACH transactions that come through from them. 2. WATCH YOUR BANK ACCOUNT to make sure that they’re not trying to debit using another name. And 3. If you call to cancel with them and they say it’s done, make sure to get a confirmation e-mail sent to you. That’s what happened with me and so I’m going to make sure that they don’t get a dime from me.
I do think that any of you who have been scammed by them should get together and SUE THEM! And remember, going through a “Debt Settlement” company goes on your credit report too! And it also trashes it! If you’re going to go through all of that, you may as well file bankruptcy. Just my opinion.
Good luck to everyone!
Posted 06 Nov 2008 at 9:47 pm ¶I am working to fix my credit and pay off my credit cards. I am working with freedom debt.com and they said they can make my 17,100 into 10,100 with 300/month payments for three years. i believe that this is a good solution. Can someone help me out and let me know if it is and a little about this company?
Posted 12 Nov 2008 at 8:07 am ¶Thanks,
Mindy
Hi all I just finished canceling my account thanks to all these reviews, one thing I would like to know is if all these complaints are fixed?. I spent a half hour on the phone which is way better then most, and after I was canceled I asked a few questions. First I asked about being told that $422 a month for 48 months would get me debt free, I then saw the fine print on the contract and that sum goes down to 162. I then started to wonder how 30,000 was going to be reduced so much. I then saw the FAQS tab on the website and low and behold first answer says that they never make any payments to your account and that you are the only one that can do that. I was told flat out that the $422.00 was taking the place of my $1100.00 that I am now paying and 48 months I would be debt free. Seemed good to me but that’s not what the fine print says is going to happen. Anyway I was told that all clients with problems were satisfied I would like to hear from you if that is the case or not. Thank God I read these reviews and got out in under 3 days with no damage (hopefully)
Posted 20 Nov 2008 at 8:07 am ¶I was thinking of joining the credit solutions program, I am glad I did some more research. They talk a good game when you call them, makes you feel better about things. I am so glad I found these post. I do have a question, if they dont work with Citi, then why do they have settlement letters posted on there website from them? Just curious! Thank you all for saving me a lot of stress and from making a bad decision.
Posted 05 Dec 2008 at 9:07 am ¶These people are just plain EVIL. Dishonest, deceptive. The worst decision I’ve made in my entire life. I managed to dodge lawsuits and ended up setling the accounts by myself, but rely. There’s a Class Action lawsuit that is being handled by a firm in Seattle. Just Google “Credit Solutions class action suit” and then you can contact them to join the class.
Posted 16 Dec 2008 at 1:13 pm ¶STAY AWAY AT ALL COSTS!!!!!!!!!! THEY WILL ROB YOU!!!!!!
Wow do I feel like a complete jack ass now.
Posted 30 Dec 2008 at 6:41 pm ¶I just singed up with Credit solutions Dec 9th.
They have already drafted the first payment from my account. I recieved an email and a call today from them telling me there was a banking conflict and that I should consider closing my checking account and moving it to another bank???? Im very upset now even more so than when i was looking for info on debt settlement. My stress level is going thru the roof. I just dont understand how companies like this are aloud to be in ” business” if everything everyone is saying on here is true they are simply stealing money form people they lie to to get their confidence. I should have listened to my skeptical side this time, but the rep Kevin Jones was a smooth talker and had me convinced it was all good and that I would be out of debt in 36 months or less. Now the interesting thing is that after doing some research I found that the statute of limitations in my state is 36 months. Meaning that after that time if the credit card company has not collected there debt they simply cant. I’m now wondering if that is what credit solutions is banking on???? regardless I will be cancelling my contract with them tomorrow and will just have to live witht the stress and do what I can.
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