4/14/2010 9:27 AM (PST)

Hi June,

The company doesn't have any reports with the BBB probably because they are too new. I checked their website registration at godaddy.com and the website was registered literally 2 weeks ago. Debt settlement usually does nothing except tanks your credit score and gets you into some hot water with your creditors.

Our experience with debt negotiating companies is that they attract customers with large credit card debt by claiming to be able to settle those debts for a fraction of their face value. They often claim that their services are more effective than those provided by credit counseling services and that they are a superior alternative to bankruptcy.

These companies usually instruct their clients to stop paying their creditors. Some companies direct clients to make their payments to the debt negotiation company instead. They promise that when sufficient cash has been accumulated to offer a settlement to a creditor, they will do so. They go on to say that their program may take two or three years to complete. Most companies collect their fees upfront and generally the fees are based on some percentage of the promised savings.

Other companies simply collect their fee and advise debtors to save their money to pay their creditors themselves. California law limits the amount of fees debt negotiators can charge, but by not collecting the money and distributing it to your creditors, companies can remove themselves from the limiting statutes and charge whatever they wish. What they are supposed to do for you while you’re saving up your money is to contact your creditors and inform them that they’re working with you, negotiate the amount to settle your debt, and ask them stop contacting you.

Complaints on these companies allege that creditors continue to harass clients, fees and interest continue to accumulate, and that the companies do not contact the creditors. Usually, creditors turn the claims over to collection agencies, file suit and pursue collection of the money owed to them. Debts are seldom settled, customer's credit is ruined, and many people are sued forcing them to seek bankruptcy protection. Typically, it is difficult to obtain refunds from the companies.

Debtors may not realize that if their creditors do accept a negotiated settlement, the amount forgiven constitutes taxable income.

4/14/2010 1:01 PM (PST)

We have some info on debt settlement posted on our Facebook page at:

http://www.facebook.com/note.php?created&&suggest¬e_id=385794969381&id=375303971685#!/notes.php?id=375303971685

Don't get taken in by the inflated promises that so many in this industry produce.

6/10/2010 10:32 AM (PST)

They are terrible. Just using the law firm as a front to do business and collect high fees. Do not do business with them!! Stay away!! Google Stratton and Feinstein, used this firm to do the same thing until the attorneys at the firm figured out what was going on!! Only a matter of time before is happens again. Do not waste your time or money!!