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Credit Solutions - Page 2

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Don't waste your money
Posted by on
DO NOT waste your money with Credit Solutions. They tell you they will help reduce your debt by 50%. They don't. It took soooo long to get any settlement offers through them. In the mean time my credit was getting worse. I finally found out from a credit collection agency that I could negotiate my own debt payments. Which I did, and paid off all my debt sooner than Credit Solutions said I would. I started negotiating all my debt through the collection agencies myself and they were all very helpful. They worked out payments I could afford and did not charge me any extra finance charges. In the long run, I paid Credit Solutions a lot of money for not much help. Lesson learned. I plan to stay debt free from now on.
     
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FlShopper on 2010-08-28:
Good for you for getting out of debt. You must feel great!
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Don't waste your $
Posted by on
You pay your monthly fee to these people, and they tell you to stop making payments on your credit card. They guaranteed me that I'd have payoff offers within 60 days. Six months later, I had one that I initiated myself with the credit card company. I kept getting one excuse after the other from these people about why they haven't settled my accounts. I had a hard time getting someone to answer the phone, and was placed on hold for 10 + minutes quite often. You can call these people 10 times, speak to 10 different reps, and get 12 different answers to your question. This company is a rip off. The BBB gave it an F, and I pulled my business from them. Fortunately, I was able to cut my losses at under $500 before they suckered me out of over 2 grand in fees.
     
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bunnyhead on 2010-06-20:
Those credit solution places are a crock. You can negotiate for free with your credit card companies and get a payoff amount.
Also, all of those late payments and payoffs ruin your credit just as much and stay on your credit report just as long as a bankruptcy. For a lot of people, bankruptcy is a better option.
Helpful on 2010-06-20:
I would agree that it is never a good idea to ignore a debt. It's a better idea to simply not get into any more debt than you can handle.

It sounds like you were wise enough to contract financiers yourself and work on settling the debt(s) in a better way.

I sure hope everything is going better for you now.
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Don't Ever Use Credit Solutions They Don't Help!!!
Posted by on
This was a really bad decision to make. All they did was take my money and make me go to court with my creditors and owe court cost. I called them numerous times to help and all they said was that they called out creditors and they know I'm with credit solutions. I was in court with one of my creditors they said they never heard from them. Credit solutions kept $1,000.00 dollars of mine and said that was there cost for helping me. HELPING ME HA! They never did anything. Please don't ever use them you won't get nothing accomplished.

I have contacted all my creditors and now they have helped me tremendously. But I'm still out $1,000.00 BE SMART DON'T BE LIKE ME!!
     
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MSCANTBEWRONG on 2009-08-31:
That was an expensive lesson to learn.
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Yeah, probably best to do it yourself....
Posted by on
DALLAS, TX -- Poor Credit Solutions gets terrible reviews and gets branded all over the internet for being evil and ripping people off, but my experience with them was actually pretty good. The bottom line is they do exactly what they say they are going to do, which is charge you a very high price to do something you could very easily do yourself: negotiate a settlement with your credit card companies. This or any other debt settlement company is not recommended for anyone other than those who have some weird serious fear about getting on the phone and actually talking to your creditors.

Besides that though, I found CS to be very responsive and effective in settling my accounts before I dumped them. They got me half on just about all my accounts and were able to break the payments up. So again, I have no beef with CS as a company, but why pay someone thousands to do something you should be doing yourself? Especially when you are trying to get out of debt!
     
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Anonymous on 2009-08-15:
Then let me ask you this. Why did you pay them thousands of dollars for something (as you stated) that you could have easily done yourself? Weren't you trying to get out of debt, just like the people who have posted complaints?

I believe every situation is unique. Your experience may not be the same that others may have had. People that search these companies out are desperate for relief and I believe easily preyed upon. It is possible that they should have done more research before signing up, but I will not discount their complaints.
The Butter on 2009-08-15:
When I signed up I had never done this sort of thing (debt settlement) before, so I figured it would be safer to use a company instead of go it alone. At minimum, it made me feel a little better to have a consultant to manage my cards. Again, the problem with CS and I'm sure other similar companies are that they just don't add much value, at least not enough to justify the fees. That said, I don't think CS is necessarily an "evil company", my experience was that they did exactly what they said they would do, and they did a decent job of getting me good settlements. Customer Service was fine, responsive, knowledgeable, etc. Again, I just don't think the service they provide is worth much and that people should do the research and settle their own debts. As soon as I figured out that I could just as easily do it myself, I dumped them. I don't really regret using them either, chalk it up to live and learn.

Of course they aren't going to try to explain this to you as they are trying to sell you their services, and for that, O.K., maybe they deserve some blame. But what do you expect? I really think some people are really willing to pay out the nose to have someone else deal with their credit card companies. For me, I would have been willing to pay, say, $100 a month to keep CS's services. But CS charges way more than that obviously. But sure, the bottom line is that no one should value CS's services at the price they charge, so definitely do it yourself.

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Credit Solutions Destroyed My Credit
Posted by on
I thought I was being responsible in trying to resolve my debt with Credit Solutions. Damn was I WRONG!!! These people destroyed my credit to the point at which I can't even get a credit card for more than $100. I am now 100% debt free (in which I had to do on my own, thousands of dollars later). But the moral of the story is, they make you go months without paying your bills. Your credit score is plummeting while all of this is happing.

Not to mention you have harassing debt collectors calling you every day. You also get a 10-99 at the and of the year.
     
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Soaring Consumer on 2009-03-18:
So basically, they did not provide the contracted service and you are suffering severe consequences as a result.

Contact your state's Office of the Attorney General and the Federal Trade Commission.
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Don't Even Call Once!
Posted by on
AUSTIN, TEXAS -- I am being harassed by credit solutions! I contacted them regarding my $130K+ student loan debt and ~$2K misc debt. I was informed that there's nothing I can do about my student loans but take another loan out to pay with hopefully a lower interest rate. Fair enough, then I was told in a quieter, hushed voice that really CS is just a settlement company.

I didn't really want to settle my debts, I'm willing to pay them off in full. They many small bills. I figured I could save the money and pull my own credit report.

I told the representative I'd call back later because I made first contact on break from work. Big mistake! I should have just said sorry I'm out! I know get called three times at least a day by Chris at CS. After the night time calls I get an email, same thing every time, saying that he's been trying to get a hold of me, they can really help, etc. etc. etc....

Now their 800 number doesn't even show up on my Caller ID it's just 428-08 or some crap like that. I've emailed 'Chris' at CS asking to please stop and yet the calls, the voice mails, and the emails still show up.

I will tell everyone DO NOT USE THIS COMPANY. When I did in good faith seek information regarding my case from the I was put on hold twice, if they can't spare five uninterrupted minutes of my time from work to help me than I don't want anything to do with them!
     
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Anonymous on 2009-01-15:
Thanks to heavy contributions to elected officials by the student loan sharks, those with student loans have few alternatives. Under the leadership of uber scum-bag Albert Lord, Sallie Mae ensured they may enough political contributions to ensure student loan servicers had more protections than a tree full of spotted owls.
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OMG Credit Solutions
Posted by on
So I signed up with Credit Solutions and they advised me that I would pay them, they would save my funds and settle on my debts for pennies on the dollar. It turned out that I paid them for taking calls from my creditors who were trying to negotiate settlements but couldn't. It turned out that Credit Solutions are not able to hold funds in a trust for me because they are in the state of Texas. It turned out that when there was a settlement offer they would email me the offer and I would have to come up with the funds myself. If I could just come up with the funds I would have never hired them. I could have negotiated my own settlements. One of my creditors was ignored for so long that I got sued and Credit Solutions had nothing to say about that. I finally called my creditors and realized that they all were trying to work something out with me and Credit Solutions was not doing there job.

I am so upset about it all. My money was taken by the same company that claimed to help me save money.
     
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Soaring Consumer on 2009-01-14:
I'd just go ahead and sue those scammers in small claims to the jurisdictional limit.
Slimjim on 2009-01-15:
Huh? If a negotiation company doesn't escrow funds by protocol then you are supposed to be saving up those funds according to (assuming) an Agreement with them. Then when they have a payoff negotiated, you are supposed to have put away enough on a schedule outlined by them to have it available. That's the only two ways I've ever heard of settlement companies working. A settlement or like company is paid to negotiate a lower payoff balance then you owe. Of course you are supposed to come up with the money. What did you think was going to happen, they would pay your bills for you too? If you are convinced you could negotiate on your own, why did you hire them? What did you think they did? This complaint makes absolutely no sense.
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Do It Yourself!!!
Posted by on
TEXAS -- After 3 months of paying about 200 hundred dollars, nothing was done for my credit card accounts that I had given them, instead I called each creditor and settled the account myself, without having to pay an extra dime. When I called to cancel the service, they said "sorry ma'am, we don't have a refund policy" so over 600 hundred dollars was wasted for them to do nothing. The customers service staff was kind and courteous as they should be when they a ripping you off.

Do it yourself and save the headache of dealing with these guys. (And keeping your money in your wallet)
     
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Credit Solutions Will Ruin Your Taxes!!! Beware!!!
Posted by on
TEXAS -- CREDIT SOLUTIONS IS THE WORST COMPANY OUT THERE!!! SAVE YOUR SELF AND CANCEL YOUR AGREEMENT OR DON'T SIGN UP WITH THEM!!!

The idiots at CREDIT SOLUTIONS fail to mention that the money the "save" you is then considered earned income!!! If you have a $10,000 debt, CRAP SOLUTIONS says they can reduce it by 50%, which makes you think you're going to save $5000. WRONG!!!! That $5000 is now considered earned income and you have to claim it on your tax return and will no doubt bump you up to a new tax bracket!!!!

I paid them over $2500 for their "services" and this stupid fool that works for them claims that they had already put time to work on my account and that I would not receive any sort of refund. They only worked on one account for me and now my taxes are going to be screwed up!!!

I HATE COMPANIES THAT BLATANTLY SET OUT TO SCREW PEOPLE!!!!

I am going to post on every possible site I can find about this company!!!

Karma's a b#*ch Credit Solutions!!!
     
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madconsumer on 2008-07-17:
it is your debt, you will pay for it some way or another.
Slimjim on 2008-07-17:
I'm sorry, but the math doesn't work for me. Paying taxes on $5000 has got to be far more beneficial than actually paying $5000. If you paid them over $2500 in fees, then your example of having $10k in debt is as hypothetical as it reads. You in fact have substantially more debt in your case, don't you. Therefore, you are saving far more than $5000 in forgiven debt, meaning even after taxed and even taking into account the $2500 charges and even a possible tax rate jump, you are way ahead of the game. Doesn't sound like you are getting screwed, although your creditors seem to be getting it pretty good.
Anonymous on 2008-07-17:
Slim's right on this one. Also one doesn't get 'bumped' into a higher tax bracket so to speak. You merely pay a higher rate on that income above the previous bracket. If you make 50k then got an additional 10K of earned income -- the 10K doesn't change what you pay on the 50K. I chuckle when I hear people say they worked overtime but got less bring home pay because they got 'bumped' into a higher tax bracket. If you've ever had to program withholdings then you know that's impossible.
Anonymous on 2008-07-17:
Slim and LMD are both right on this one. Instead of being mad that you have to pay a little additional tax, why not be thankful that part of your debt has been forgiven. These are hard times for a lot of people why not look at your glass as half full instead of half empty!
DebtorBasher on 2008-07-17:
Slim, Lois and John are all right.
But I think they should have expalained that to you.
Anonymous on 2008-07-20:
Debtor, I'm sure Credit Solutions did notify their client of the tax ramifications. It might be buried in the fine print, but its there. Again, a good portion of OP's debt was forgiven which is more than most consumers get.
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I'm debt free on my credit cards - Now I owe the IRS
Posted by on
OKLAHOMA -- I went through Credit Solutions with the understanding that when my credit cards were paid off and I was through paying installments to Credit Solutions, I would be debt free. WRONG!!! I find out from the tax man, that the money on my credit cards left over after I paid the settlement, is considered income!!! Has anybody had to deal with this? So now I have my credit cards paid off, but am going to owe the IRS because of this extra "income". I will have to make payments to the IRS with interest for several years. When I talked to Credit Solutions about why they don't mention this fact up front before you sign anything, all basically they had to say was it was not their responsibility to tell anybody. A lot of the extra income is interest from the credit cards. I had no idea that I would have to pay taxes, otherwise, I might have been able to save some money or have more taken out of my paycheck to cover this.

I am very very upset about this. I would rather owe the credit cards than the IRS. Please let me know if anybody has had this happen to them. I just really believe that Credit Solutions should have told me.

Any ideas or suggestions would be appreciated.
     
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Anonymous on 2008-04-07:
If I understand you correctly, you made a settlement with the credit card companies (through Credit Solutions)to pay off the debt for a lower amount.

I guess it makes sense. You had the benefit of the use of more funds than you actually paid back.

Talk or write to the IRS and plead your case. If you didn't knowingly avoid paying the taxes on the amount, they may possiibly waive the penalties and interest. It couldn't hurt to try.
Slimjim on 2008-04-07:
This is of no fault to Credit Solutions and your complaint is ridiculous, sorry. The company did their job and got you out of debt, and this is their thanks? The IRS DOES consider forgiven debt as income, and why shouldn't they. You pay a PERCENTAGE of tax on the forgiven debt, so in essences, you walk away sticking your lenders and only had to pay a tax on the total amount. You come out smelling like a rose here and are still looking to blame somebody for something???
Anonymous on 2008-04-07:
Did you try filing IRS form 982? It may exempt you from paying taxes on the savings amount. That info I found on a number of debt settlement web pages, but no mention at all from Credit Solutions.
Anonymous on 2008-04-07:
I cannot fault Credit Solutions. The IRS regards forgiven debts as 'income'. Oddly, when the feds forgive debts by foreign nations, they do not regard it as federal 'income'. I don't see where the poster was 'sticking it' to the lenders. It was a negotiated settlement and will show up on their bureaus. The poster's error is a common one...discovered when the lender sends them a 1099 for the forgiven debt. Still, the amount owed the IRS is (at most) 33% of the forgiven amount. A competent tax attorney could help them get the penalties and much of the interest forgiven. Good luck poster.
srg1980 on 2008-06-27:
Hi I just wanted to let you know that I understand how you feel. I used Credit Solutions also. The same thing happened to me. After reading about this I understand that the forgiven debt is "income". Overall Credit Solutions had POOR Customer Service, although I am out of debt too. They didn't call me for MONTHS while I was in the program, and now they've started calling me again, and I can't get them to stop calling! They should tell their customers upfront about these things.
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