Consumers Beware: Cuomo Goes After Nationwide Asset Services and Credit Solutions of America

In a follow-up to our post on Nationwide Asset Services, New York Attorney General Andrew Cuomo filed a lawsuit against Nationwide and Credit Solutions of America last week.

The two debt negotiation firms are being charged with fraudulent business practices and false advertising.

Credit Solutions of America has signed up 18,000 customers in New York State since 2004, earning $17 million in fees, but has settled debts for less than 2,000 of its customers. At its height, Credit Solutions had 200,000 customers with a combined debt of $2.25 billion. Its policy of charging a fee in advance of 15 percent of the total debt drew the attention of state regulators.

Credit Solutions had to refund $700,000 to customers in South Carolina in 2007 after violating the state’s credit counseling laws. It had to pay $588,000 to Idaho customers in 2008 for operating in the state without a license. In March, the company was sued by the Texas attorney general for fraud.

Nationwide Asset has signed up 1,981 customers since 2006, yet has settled debts for only 64 of them.

Andrew Cuomo issued the following statement:

“These companies claim to be the light at the end of the tunnel, but time after time they have shown that they only add to the burdens of Americans dealing with debt,”

Cuomo is initiating a massive investigation into the debt settlement industry, which has grown dramatically as the economy has worsened. He has also filed 15 subpoenas against other major debt negotiation firms in the past month.

Consumers Beware: Nationwide Asset Services

Nationwide Asset Services, based in Phoenix Arizona, has received a total of 53 complaints with the Better Business Bureau over the past 36 months. Founded in 2001, consumer complaints have included billing or collection issues, contract disputes, problems with refunds and overall inferior customer service.

In defense of Nationwide Asset, all of their complaints with the BBB have been resolved. However, if you are considering working with this company you should take a moment to address these past issues with them to make sure they have improved their service.

Nationwide Asset Services, Inc.
1990 W. Camelback Road Suite 215
Phoenix, AZ 85015
Phone: (888) 837-2930
Contact: Karen Bradley - Customer Service Manager

Have you worked with Nationwide Asset Services? What was your experience?

Consumers Beware: American Freedom Financial

American Freedom Financial, based in Anaheim California and started in December of 2008, has received complaints from the Better Business Bureau regarding unauthorized credit card charges to consumers.
In addition, consumers claim to have been confused about the actual services offered.

The complaints assert that customers were wrongly charged fees even after deciding not to work with the company or after canceling existing contracts. However, according to the BBB, American Freedom has refunded each customer that filed a complaint.

Click here to read one person's experience with this company.

American Freedom Financial
2401 East Katella Avenue, Suite 200
Anaheim, CA 92806
Phone: (714) 941-5600
Fax: (877) 513-7872
Aaron Mcathy - President

Have you worked with American Freedom Financial? What was your experience?

Consumers Beware: Freedom Debt Relief

This is the first post in Debtsquared's new series covering the worst and best Debt Negotiation firms in the US.

The first of the worst featured is California-based Freedom Debt Relief, headquartered in San Mateo.

According to the BBB, Freedom Debt has received 182 consumer complaints in the past 36 months.

The complaints include the following:

6 regarding Advertising Issues
22 regarding Billing or Collection Issues
45 regarding Contract Issues
30 regarding Customer Service Issues
1 regarding Delivery Issues
20 regarding Refund or Exchange Issues
21 regarding Sales Practice Issues
28 regarding Service Issues

The California Corporations Commissions filed a desist and refrain order against the CEO and Co-CEO of the company in 2008 for not operating with a license and for being in violation of that law included overcharging consumers.

The San Mateo County District Attorney's Office also filed a complaint against the company in 2008 alleging that Freedom Debt made untrue or misleading statements and omission of material facts to consumers.

If are considering working with Freedom Debt, please take a moment to do further due diligence and ensure that this company has resolved their numerous consumer complaint issues.

Freedom Debt Relief
1875 S Grant St Ste 400
San Mateo, CA 94402-2676
Phone: (650) 571-0961
Principal: Mr. Andrew Housser, CO-CEO

Additional DBA Names: Freedom Financial Network, LLC
Debt America
Debt Resolution Partners
Freedom Debt Relief USA
Century Negotiation

Have you worked with Freedom Debt Relief? What was your experience?

Surprise: Credit Card Companies Are Sleazy

According to a recent Pew study, 100% of 400 credit card companies reviewed contained at least one practice that the House committee deemed deceptive or unfair. 93% of the creditors investigated allow any-time, any-reason repricing, allowing the issuer to increase a customer's fees even if they have never missed a payment.

In addition, credit card companies employ a wide range of other slimy tactics to charge or increase fees:

• 87% of cards allow the issuer to apply payments to low-rate balances before high-rate balances, increasing the overall interest the consumer pays
  

• 72% of cards offer low initial rates which can be revoked at any time after a single late payment
  

• 84% of cards have loop holes in their terms of service which limit card holder's legal rights