- Report: #332500
Complaint Review: Debt Settlement USA - Scottsdale Arizona
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Debt Settlement USA
16430 N Scottsdale Rd Scottsdale, 85254 Arizona, U.S.A.
Phone:
480-443-1709
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Debt Settlement USA Ethics Lacking With This Company... A Report By An Ex-Employee WITH Ethics Scottsdale Arizona
I need to urge any person that is thinking of using this compan's debt settlement services check them out CAREFULLY. Ask the right questions. Get answers in WRITING. You are at your most vulnerable when contacting a debt settlement company. You are looking for a pipe dream and this company will offer it to you. When you are in severe financial distress, it is all the more important that you make a GOOD and FULLY INFORMED decision. Don't fall for the hard sell. Take some time to think things over before you sign up.
I believe this is not an ethically run company. I have seen all the workings from the inside and I surely would not trust to solve my financial difficulties if I were in such a situation. What I am outlining is just the tip of the iceberg but is enough to at least let consumers know that they should at the very least dig beneath the surface of the promises they will receive.
Debt Settlement USA, in my opinion, uses inflated numbers when referring to their percentage of debt settled. When an account is past due there are anywhere from 10-200% of fees and interest added on to the total. Virtually all collection agencies and creditors will knock off all or most of those fees even before an individual starts negotiating with them. Debt Settlement uses the inflated balances that include all of the junk fees and interest as a basis for their advertised settlement amounts (they claim they settle debt for 40%). Though this MAY be technically correct, it is very deceiving to the ordinary consumer. I have sent a communication to the Arizona Attorney General's office regarding this.
Having seen the inner-workings of their settlement department, I can also tell you that many of the accounts you enroll with them to be settled are, in fact, not able to be settled for anything near the discounts Debt Settlement USA advertises. Many will not be settled at all. The settlement department is largely just an extension of the sales department. The representatives get paid a bonus for retaining a certain percentage of clients (high percentages drop out of the program once they read the fine print in their contract).
In addition, there are many companies that will sue you immediately if you sign up with a debt settlement company. Others may very well sue you somewhere along in the process. Debt Settlement's agents will generally let you know that, but only if you ask and only in a cursory manner. The fact is- in my opinion and from my observations-the only clients that may get any benefit out of Debt Settlement USA's program are those that have all of the following: 1)Very, very, old unpaid debt. 2) The creditors have lost track of them therefore they have not been sued. 3) Don't have even the slightest amount of time to attempt to call their creditors and settle the accounts themselves.
The owners of Debt Settlement USA also run Brauer Law Firm out of the same building as Debt Settlement USA. Because of this and also because of the fact that much of the debt is not settled by actual attorneys, this company may not be in compliance with some state's laws.. This shows a great deal of ethics, especially considering the fact that the firm is owned by attorneys---not attorneys that have by training specialized in debt settlement---just attorneys out to make a fast buck.
The facts are that most consumers will do equally well if not better settling their debt on thier own once all fees are considered. You may be able to get this information out of a Debt Settlement USA representative but it will not be willingly.
Again, I was very turned off by the ethics and the "enroll the client at all costs" attitude by the owners and managers of this company. I am not saying to not use them but, like I said, ask ALL the questions necessary and get the answers IN WRITING before you proceed.
This company is very aggressive in maintaining a good facade. If you file a complaint with the BBB, they will likely address it to keep a "satisfactory" rating. This does not excuse the fact that many of the complaints would not have occurred if Debt Settlement had disclosed all the facts and realities of debt settlement with their firm to their customers in the first place.
Personally I did not like the fact that my associates were nothing but sales people that were required to make a quota rather than really care for their clients. There is nothing wrong with doing both, but associates in this company are only concerned with enrolling clients and earning a commission with no concern as to whether the programs actually appropriate or will even help the client. You could not get away with those kinds of ethics in the investment field these days. Once long overdue regulation finally hits debt settlement companies such as Debt Settlement USA, they will not be able to get away with it either. Until then though, its BUYER BEWARE.
The decision to use this company is up to you. If you do so, I wish you the best of luck because I have heard all the terrible and distressing stories of clients that called in. Personally I could not live with the guilt knowing that most of them are not going to benefit from Debt Settlement USA's "services". I hope you are one of the exceptions to the rule should you choose to use their program.
Jake
Paradise Valley, Arizona
U.S.A.
I believe this is not an ethically run company. I have seen all the workings from the inside and I surely would not trust to solve my financial difficulties if I were in such a situation. What I am outlining is just the tip of the iceberg but is enough to at least let consumers know that they should at the very least dig beneath the surface of the promises they will receive.
Debt Settlement USA, in my opinion, uses inflated numbers when referring to their percentage of debt settled. When an account is past due there are anywhere from 10-200% of fees and interest added on to the total. Virtually all collection agencies and creditors will knock off all or most of those fees even before an individual starts negotiating with them. Debt Settlement uses the inflated balances that include all of the junk fees and interest as a basis for their advertised settlement amounts (they claim they settle debt for 40%). Though this MAY be technically correct, it is very deceiving to the ordinary consumer. I have sent a communication to the Arizona Attorney General's office regarding this.
Having seen the inner-workings of their settlement department, I can also tell you that many of the accounts you enroll with them to be settled are, in fact, not able to be settled for anything near the discounts Debt Settlement USA advertises. Many will not be settled at all. The settlement department is largely just an extension of the sales department. The representatives get paid a bonus for retaining a certain percentage of clients (high percentages drop out of the program once they read the fine print in their contract).
In addition, there are many companies that will sue you immediately if you sign up with a debt settlement company. Others may very well sue you somewhere along in the process. Debt Settlement's agents will generally let you know that, but only if you ask and only in a cursory manner. The fact is- in my opinion and from my observations-the only clients that may get any benefit out of Debt Settlement USA's program are those that have all of the following: 1)Very, very, old unpaid debt. 2) The creditors have lost track of them therefore they have not been sued. 3) Don't have even the slightest amount of time to attempt to call their creditors and settle the accounts themselves.
The owners of Debt Settlement USA also run Brauer Law Firm out of the same building as Debt Settlement USA. Because of this and also because of the fact that much of the debt is not settled by actual attorneys, this company may not be in compliance with some state's laws.. This shows a great deal of ethics, especially considering the fact that the firm is owned by attorneys---not attorneys that have by training specialized in debt settlement---just attorneys out to make a fast buck.
The facts are that most consumers will do equally well if not better settling their debt on thier own once all fees are considered. You may be able to get this information out of a Debt Settlement USA representative but it will not be willingly.
Again, I was very turned off by the ethics and the "enroll the client at all costs" attitude by the owners and managers of this company. I am not saying to not use them but, like I said, ask ALL the questions necessary and get the answers IN WRITING before you proceed.
This company is very aggressive in maintaining a good facade. If you file a complaint with the BBB, they will likely address it to keep a "satisfactory" rating. This does not excuse the fact that many of the complaints would not have occurred if Debt Settlement had disclosed all the facts and realities of debt settlement with their firm to their customers in the first place.
Personally I did not like the fact that my associates were nothing but sales people that were required to make a quota rather than really care for their clients. There is nothing wrong with doing both, but associates in this company are only concerned with enrolling clients and earning a commission with no concern as to whether the programs actually appropriate or will even help the client. You could not get away with those kinds of ethics in the investment field these days. Once long overdue regulation finally hits debt settlement companies such as Debt Settlement USA, they will not be able to get away with it either. Until then though, its BUYER BEWARE.
The decision to use this company is up to you. If you do so, I wish you the best of luck because I have heard all the terrible and distressing stories of clients that called in. Personally I could not live with the guilt knowing that most of them are not going to benefit from Debt Settlement USA's "services". I hope you are one of the exceptions to the rule should you choose to use their program.
Jake
Paradise Valley, Arizona
U.S.A.
1 Updates & Rebuttals
Jack Craven
Scottsdale,Arizona,
U.S.A.
Response to ex-employee
#2UPDATE Employee
Fri, June 06, 2008
As the President of Debt Settlement USA, Inc., it should be noted that I reviewed a post on the Ripoffreport.com website that contains many defamatory statements. The statements which are patently false and defamatory, and my response thereto, are as follows: "Debt Settlement uses the inflated balances that include all of the junk fees and interest as a basis for their advertised settlement amounts (they claim they settle debt for 40%.)" THE ABOVE STATEMENT IN QUOTATIONS IS FALSE AND DEFAMATORY. WE HAVE DOCUMENTATION SHOWING THE SETTLEMENTS WE OBTAIN FOR CONSUMERS. MOREOVER, WE TELL CONSUMERS THAT THERE ARE CERTAIN CREDITORS THAT MAY SETTLE FOR HIGHER THAN 40%. FOR THE PAST FEW MONTHS, OUR SETTLEMENT PERCENTAGE IS 43% WHICH INCLUDES ALL HARD TO DEAL WITH CREDITORS AND WITH PEOPLE THAT HAVE BEEN SUED. IN ADDITION, CLIENTS ARE ALWAYS GIVEN AN ESTIMATED SAVINGS, WE DO NOT GUARANTEE SETTLEMENT RESULTS. "The settlement department is largely just an extension of the sales department." THE ABOVE STATEMENT IN QUOTATIONS IS FALSE AND DEFAMATORY. WE HAVE COPIES OF ALL SETTLEMENT LETTERS. THE SETTLEMENT DEPARTMENT WORKS TO OBTAIN SETTLEMENTS AND IT IS NOT AN EXTENSION OF SALES. IT HAS A SEPARATE MANAGEMENT TEAM AND CHAIN OF COMMAND, ALONG WITH POLICIES AND PROCEDURES UNIQUE TO THE DEPARTMENT THAT MUST BE FOLLOWED. "...the firm is owned by attorneys---not attorneys that have by training specialized in debt settlement" THE ABOVE STATEMENT IN QUOTATIONS IS FALSE AND DEFAMATORY. THE OWNERS ARE NOT ATTORNEYS AND MANAGEMENT HAS EXTENSIVE FINANCIAL SERVICES EXPERIENCE. I HAVE BEEN IN THE FINANCIAL SERVICES INDUSTRY FOR OVER 25 YEARS AND HAVE BEEN RESPONSIBLE FOR MANAGING THE COLLECTION, RECOVERY, FRAUD, AND PAYMENT PROCESSING DEPARTMENTS FOR SOME OF THE LARGEST FINANCIAL INSTITUTIONS IN THE UNITED STATES. I HAVE YEARS OF EXPERIENCE DEALING WITH COLLECTION AGENCIES, DEBT BUYERS AND COLLECTION ATTORNEYS, AND AT ONE TIME RAN ONE OF THE LARGEST DEBT BUYING FIRMS IN THE COUNTRY. MY MANAGEMENT TEAM AND I HAVE SPECIALIZED EXPERIENCE DEALING WITH CLIENTS WHO HAVE SPECIAL NEEDS, ESPECIALLY IN THE AREA OF DEBT SETTLEMENT. "...enroll the client at all costs attitude by the owners and managers of this company." THE ABOVE STATEMENT IN QUOTATIONS IS MISLEADING. WE HAVE STRICT STANDARDS TO ENROLL A CLIENT. THESE STANDARDS ARE BASED ON TYPE OF DEBT AND ABILITY TO SAVE MONEY TO PAY OFF ACCOUNTS. IF A PERSON DOES NOT MEET THESE CRITERIA, THEY ARE NOT ENROLLED IN THE PROGRAM. MOREOVER, IF WE FIND OUT THAT AN EMPLOYEE HAS MISLED ANY CLIENT, THAT EMPLOYEE IS TERMINATED. "If you file a complaint with the BBB, they will likely address it to keep a 'satisfactory' rating." THE ABOVE STATEMENT IN QUOTATIONS IS MISLEADING. WE ADDRESS ALL CONCERNS BY CONSUMERS WHETHER THEY FILE A BBB REPORT OR NOT. "...many of the complaints would not have occurred if Debt Settlement had disclosed all the facts and realities of debt settlement with their firm to their customers in the first place." THE ABOVE STATEMENT IN QUOTATIONS IS FALSE AND DEFAMATORY. A CLIENT REVIEWS THE PROGRAM AND IS GIVEN ALL OF "THE GOOD, THE BAD AND THE UGLY," AND NOT ONLY BY THE CONSULTANT, BUT DURING A SECONDARY SCREENING PROCESS AS WELL. FINALLY, ALL DISCLOSURES SETTING OUT THE TERMS AND CONDITIONS OF THE PROGRAM ARE RECEIVED IN WRITTEN FORM IN OUR AGREEMENT. IF A CLIENT HAS QUESTIONS ABOUT THE PROCESS AFTER ENROLLMENT, ASSISTANCE IS AVAILABLE FROM OUR CUSTOMER SERVICE DEPARTMENT. We have had our policies, procedures and forms reviewed by not only major credit grantors, but also by various government agencies and legal advisors. As we never had a "Jake" working for us, I can only assume that this report was filed by either a competitor or a disgruntled ex-employee who could not abide by the high standards that we demand from our employees. As this website does not verify or publish the information posted or the identity of the authors, it is questionable as to whether this website is actually created "by consumers, for consumers." Respectfully, Jack Craven President
