Credit Solutions is a Texas based debt settlement company. They say their programs are designed to get their customers debt-free within 3 years or less, however, many customers do not believe this. Below are some of the experiences shared by consumers in the DebtCC forum:
Is Credit Solutions a scam?
Many consumers ask "Is Credit Solutions a good company or a scam?" Well, a number of people have grievances against this company. Check out the sections below to find out what people have to say about Credit Solutions.
Don't contact customers: One of the common complaints against the company is that they charge their consumers money, but don't contact your creditors to start the settlement process. Customers who have been with the company for 2-5 months suddenly find out that the company hasn't contact their creditors to start settling their bills.
The company asks their customers to not contact their creditors on their own. One customer says the company continued withdrawing their monthly fees from his savings, but did not contact him about any settlement proposal. He learned that the loan has been sold to a new company that started threatening him with wage garnishment. He ended up having to pay more than what he actually owed because of the interest accrued on the loan. Check this out
Misleading customers: Another customer accused the company of misleading him by encouraging him to include a student loan worth $25k in the program. The customer later received a wage garnishment notice for this loan. On contacting Credit Solutions, he was told that the student loan was included by mistake and they could not help him get rid of it. Get more information on this. Get more information on this
Cancellation of accreditation and consumer complaints: One consumer claims that he has seen more than 1400 complaints filed with BBB against this company. He says the company is no longer a member of The Association of Settlement Companies (TASC), and that the company has lost its JD Power certification due to customer dissatisfaction. Here are the details
Consumers have said that talking to the customer service associates at Credit Solutions is very stressful. Whenever they call the company, they have to provide all the details of their accounts to the customer service representatives, as if they are calling the company for the first time. Customers are often kept on hold for a long time, leaving them with a large phone bill. One customer said that he was trying to settle his credit card debt with the company and 2 different people were working on his account. To his surprise, neither of them knew anything about it. The customer was very disgusted with their service. Know more
Has anyone had good experiences with the company?
In spite of the numerous stories about Credit Solutions scams, there are a lot of consumers who claim to have benefited from the services offered by the Credit Solutions. Their comments on their experiences are:
The company settles debts satisfactorily: One customer said he worked with the company for 2 years and was about to pay off his credit card debt within a few months' time. He always got the paperwork from the company to verify the payments he made and whenever he had any problems, he called the company and the representatives helped him.
They deliver what they promise: Some customers have said that Credit Solutions delivers what they promise. One customer said the company estimated they would be able to settle a $47K debt down to $24K, but they managed to settle it for just $19k.
The company is honest about its limitations: Some consumers have said the company tells them which loans cannot be settled. One customer said a Credit Solutions representative told him upfront that they cannot settle student loans and asked him to not include it in the program.
If you have any grievance against the company, you can file a complaint with the BBB and alert other consumers. You should also contact FTC and your State Attorney General's office and lodge your complaint with them. You should keep sufficient evidence to support your complaint to submit to the appropriate government agencies if needed.
Is Credit Solutions a legitimate company? I doubt whether it is a good company.I have been dealing with them for about 2 months. I just talked to one of my credit card companies and they said that they have not heard anything from credit solutions about any kind of settlement. Now what do I do?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.