Complaint Review: Enlightened Debt Solutions

Our agency respects the rights of others to express their opinions and views on their experience with our agency, however the information contained in this borders more on libel than it does a person's legitimate experience with our agency. I will address each point asserted in this posting, and offer our customer service department contact information for the poster to please call in and discuss what their grievances are in more detail, or at least with a degree of honesty.

Let me first state that we have no record of a client named Steve locate in Panama City, FL. I must assume that the individual listing this, wanted to do so under a blanket of anonymity, as there are very few facts present in the posting, and a great deal of misinformation and flat out lies. What is more likely the case, is that this is a competitor looking to place a smoke-screen of fallacious info on the internet.

Rather than engage in a series of petulant back and forth postings, Let me begin by stating some of the facts. Our agency performs a thorough budget analysis during each counseling session, to see what program if any, would suit a consumers needs. Once we are aware of where the individual's current expenses and income are set, and determine based on their budgetary surplus or deficit what program will suit their needs. If it is a service that we do not offer we advise them to seek out a program that will suit them.

Many programs exist that can help consumers with their debt issues: Debt Management, Debt Settlement/Negotiation, Bankruptcy, Loss Mitigation (foreclosure assistance), etc. Each program has positive and negative components that the consumer must take into account before making a decision. Our agency deals with Debt Settlement. Debt Settlement is intended to help financially insolvent consumers avoid bankruptcy and pay back a reduced principal to their creditors. On average a consumer will repay 30-60% of the total amount owed, however some accounts are settled for significantly less, and at the same point some accounts are settled for more. The important thing to remember with Debt Settlement, is that nothing is set in stone with the banks and the degree of success a client will see is largely determined by the legitimacy of their financial hardship and the caliber of the debt negotiators working on their behalf. Our counselors work through a detailed discovery process in an attempt to see with as much clarity as possible what a persons goals and limitations are.

The issues brought up in this posting are quite suspect for several reasons. Our Counselors are thoroughly trained and closely monitored. We operate with full disclosure and make consultative recommendations based on the financial situation of the client. An individual who makes enough money to cover their minimum payments, and is current with their debts, would often be recommended to pursue a debt management program or consumer credit counseling program, provided they present a financial need.

A consumer who is already delinquent on their debts, does not make enough to cover their minimum monthly obligations, would be considered a potential debt settlement candidate. The consumers who are recommended to participate in a Settlement program face a very real risk of bankruptcy. They are in a state of financial distress, where they are unable to meet their monthly obligations and are either already in significant default or are just about to fall into a state of default on their debts.

Our agency speaks with many consumers who simply want to avoid paying back their debts to their creditors, and will attempt to manipulate the details to their situation to appear to be in more distress than they actually are. These individuals are not qualified for Debt Settlement and are encouraged to pursue another solution. At that same time, there are also many consumers who simply do not make enough money, or too many of their primary needs are in jeopardy for them to participate in a settlement program, These individuals should speak with a bankruptcy attorney.


Later in the posting the statement of I would just give her my account numbers and balances to my credit cards, was made, which smacks of inflammatory accusation. As if to say that the individual just hands us that information and we use it for a nefarious purpose. We capture that information in several circumstances, as part of the consultation. First, it would be captured to evaluate what payment a client could potentially be facing if they were to enroll in a Debt Management Program. In order to make an accurate determination and ascertain what benefits the creditors are extending, it is necessary to capture the amount owed and the account number. Different credit card companies extend different benefits, and some companies have benefits that differ even for their internal clients. So, one customer may have a different benefit plan than another (because their card was bought from another bank, or falls into a different risk category, etc). So, by using the credit card number we are able to ascertain all the specifics on what benefits an individual could expect. Second, it is important to know that referencing the account number also helps the counselor to know what enrollment requirements or restrictions are in place. All these factors are important when determining what a consumer would be paying if they were to enroll in a Debt program

Later the statement of Against my better judgment I signed up with this company about 7 months ago. Since signing up, my phone has rang off the hook with collectors and banks. They all have stated to me that this company was not a legitimate company and they were going to sue me and take away my home. There are numerous false statements in the above paragraph, which makes me believe that this is not even a real client. A bank or collector stating that they are going to take away your home for non-payment of an unsecured debt, is in clear violation of the Fair Debt Collections Practices Act. Not only is this action illegal on the part of the collector, but is an impossible consequence for non-payment on unsecured debts. Unsecured debts are not attached to property, and therefore failure to pay does not mean that the bank will take possession of the property. Also, an individual who faces an illegal claim such as above has the right to file charges against the collection agency, and in most circumstances the client will be able to collect money in the form of punitive damages.

For further clarity there are numerous restrictions on what a collector or Creditor can do in the effort to collect on a debt.
Prohibited conduct
The Act prohibits certain types of "abusive and deceptive" conduct when attempting to collect debts, including the following:
Hours for phone contact: contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time
Contact after being asked to stop: contacting consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further contact or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted
Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number.
Misrepresentation or deceit: misrepresenting the debt or using deception to collect the debt, including a debt collector's misrepresentation that he or she is an attorney or law enforcement officer
Seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law
Threatening arrest or legal action that is either not permitted or not actually contemplated
Contact by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business
Reporting false information on a consumer's credit report or threatening to do so in the process of collection


I gave Enlightened Debt Solutions the benefit of the doubt even though I had not received a phone call, email or anything from them since I had enrolled in their program. All new clients are given a welcome call by our customer service staff. At that time their payment and information is verified. A few days later they receive a welcome package that addresses the process of settlement, program details, and contact information for our customer service, etc. We have an extremely responsive customer service staff with a very high Customer Service to Client ratio. All this is done to ensure that clients are always able to speak with an agent, and have their issues addressed. It is a process, however and requires involvement by the client. It is not a simple and quick fix. With out a doubt clients may have problem creditors and we must have those issues communicated to us.

I do wonder however, why any reasonable (or real) person would remain enrolled in a service where they felt that nothing was being done, were being threatened to have their home taken away and being served legal paperswhy would they wait for over half a year to make a call to that company? And then when deciding to contact the company they call a different group with questions.

I called USOBA trying to reach them and USOBA told me they were an organization for Credit Counseling and that they basically work for the banks and credit cards. Steve, I too contacted USOBA, and they claimed that they have never issued any statement on our company such what is listed above. And invited any other consumers to contact them regarding the issue.

We have not nor would we ever anticipate receiving funds from a bank for settlement services. We work for our clients. We work to save them money and help them re-establish household solvency. The notion of working for the banks relates to Consumer Credit Counseling, and even though this is not the service we provide the statement itself is untrue. Some (not all) credit counseling agencies receive some (not much) fair share contribution from banks for servicing an account. This is usually a small percentage of the payment the client makes 2% - 10% in most cases. So, for a client who is making a $200 payment the bank would be sending the CCCS agency back $4 - $20 hardly enough to be considered working for the banks.

I received a summons and ended up with a 30% wage garnishment against me. This statement is of particular concern. A summons in the state of Florida does not lead to an immediate wage garnishment, and there are many steps that a consumer can take to pause, halt, or plead their case to avoid the administration of a garnishment. In a case of legitimate insolvency it is very difficult for a creditor to apply a garnishment, as the client has no disposable income. The most troubling part of the above is that the imposing of a 30% wage garnishment violates the Federal Garnishment Limit of 25% (law annexed below)

Except as provided in subsection (b) of this section and in section 1675 of this title, the maximum part of the aggregate disposable earnings of an individual for any work-week which is subjected to garnishment may not exceed

(1) 25 per cent of disposable earnings for that week, or

(2) the amount by which disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less.

So, how exactly could this be possible?

I still have not heard a word from Enlightened Debt Solutions. This is quite unlikely. We work hard to help our clients, and from the vast tapestry of lies woven by this original post, I would say it is much more likely, that Steve, was never a client of ours.

As far as expectations are concerned, we make no issue of our clarity. There are, with out a doubt, both Pro's and Con's to Debt Settlement, and only consumers who's financial situation legitimately dictate the participation in a settlement program will see the results that they want. Consumers who are just trying to run from a debt, or are looking to beat the system are in for a rude awakening. We attempt to provide a very high level of customer support, and encourage any clients who have concerns to please contact our customer service line so that we can address your issues

Debt Settlement is very much a process. It does take time and effort on both the part of the consumer and the debt settlement agency. Any company that would claim that as not being the situation is simply being disingenuous. I know that our counselors work very hard to convey an accurate picture of settlement process, so that individuals are more aware of the expectations they should have.

As I said above, I want to include our customer service information so that any concerns can be addressed. I also want to stress that our agency has worked very hard to maintain a positive reputation, and that libelous writings and the blatant unfounded defamation of our company demonstrates a significant and quantifiable level of damage to our company. Our legal department will be looking into this matter and we encourage Steve or whomever the actual poster of this message is, to govern themselves accordingly. Should there be legitimate issues or concerns that we have to address, we will happily do so, however should this be found to be completely unwarranted, please know that we will prosecute to the fullest extent of the law, the individual or agency found to be responsible.

Thomas Stewart
President

Enlightened Debt Solutions Customer Service Number
866-285-9917