Consumer Debt Solutions Complaint - Please do what you were hired to do.

Review by Deb on 2007-03-15
Back in October of Last year dh turned over his account (s) to CDS. Consumer Debt Solutions, Counsel for Debt Solutions are two names the CDS stands for. Since that date.. The first installment that is taken is THEIRS. After the first payment is drawn from a checking account the next month the payment agreed on will be drawn again and placed in a trust fund for your creditors on file. CDS sends Power of Attorney notices to creditors and is supposed to field collection calls and negotiate settlement of the debt (s). They fail to mention that they also take a miniumum payment each month from your trust fund of 49.00 for themselves. To this date there has been no negotiations with our Creditors they have on file. No payment schedule has been reached. None has even been started. They continue to take 49.00 from our trust fund and do nothing. After reading over the contract the other day that was signed it also states that these people will take an addtional 25 percent of whatever settlement is reached with the creditor. my DH's accounts are in default now and one is charge off and the other is headed there. Neither the creditor or the Credit Counselors have tried to settle the debt at all. We just keep getting phone calls and letters from the orininal creditor and subsequent collection people. They are all given over to CDS and added to the account but nothing happens it seems. The other day when he got a collection type letter and notification from the Original creditor that the account was charged off we tried to contact CDS and didn't get a call back for 2 days. This is a direct line into his representative too. She calls back when she knows he's not around and they just play phone tag for days it seems and nothing is being handled. What is a person supposed to do these days? We are told to go to these Credit counselors to negotiate the accounts because many have lost the option of a chapter 7 bankruptcy and the creditors just ignore letters and calls from both the counselors and us. Then the Counselors screw us over and take more money for themselves, and doing nothing for their clients. I haven't seen this category really on this forum but would be interested in hearing if anyone else is having similar problems or results with a "Credit counselor" or debt managment service. Seems the Gov. needs to crack down on all the banks, credit card companies , creditors etc. as well as these credit management services. This one has a satisfactory listing on BBB and other such sites but there are complaints too. Thanks
Comments:4 Replies - Latest reply on 2007-10-07
Posted by oreo on 2007-10-03:
CDS-I am getting the royal shaft too.I was assured my bills would be paid, but not one of my bills have been paid,and now my pay check has been garnished! I am beyond fed up with these shisters who take advantage of people who have fallen behind for what ever reason, my reason was medical, and need help to dig their way out of debt. We should all get together and hire a good attorney to fight these rotten people!
Posted by Deb on 2007-10-04:
WE got our trust money back from them and I suggest that you do also. There are a couple different CDS companies listed that are in the same business. DH hired an attorney with some of the trust money and is now filing a chapter 13 bankruptcy protection. CDS never did a darned thing for us.. They won't even supply us with the letters they supposely sent the creditors to cease and desist and whatnot. They do not make monthly payments though if you do get a negotiated settlement by some Divine intervention. THey also took nearly 1000.00 over the last year for themselves in maintenance fees every month for doing nothing also. They wait until your trust account has built up enough money to pay the entire amount negotiated (This normally takes many years) then they cut you a check from your trust account to pay the creditor.. They then would take their 25 percent of whatever they saved you if anything so you would owe them probably thousands also. No creditor I know is going to wait years for payment. Since statutes of limitations in most states are 3 to 4 years that a creditor can sue... By the end of that waiting time.. Technically you wouldn't be liable for the debt legally to them and wouldn't have to pay a darned thing. Sorry you are doing through this... Maybe you need to go for the bankruptcy protection also. Medical expenses will drown you faster than pretty much anything. Get your money out of CDS if you haven't already and hire a real professional to help you.
Posted by Donna2007 on 2007-10-06:
You are so right. When you went to these people you would have been better off filing BK. In the end you would have been a couple of years getting restablished but look at it this way.
These people tell you they can help you pay off your debts, well if you go to a bank or try to apply for a loan after you have been bled bone dry by these vultures, the people look at you and say "Why do we want to loan money to someone who has to let someone else take care of paying their bills?
I work with financing and our banks would rather see a two year BK than someone who is having to be baby sat on paying their bills, trust me I know what you are trying to do and there is nothing wrong with getting help. This is sad when people trust someone to help them with their financing and are taken advantage of. I am so sorry you were taken this way and hopefully some day someone is going to go after these people and straighten this out, I see it all the time and so do the banks.
Posted by Deb on 2007-10-07:
Donna, The thing is.. this company doesn't pay anything. You build up a trust fund , which basically gives them access to your money using it for stocks or whatever... They in turn charge a monthly maintenance fee on top of an initial fee payment, which is the amount of your monthly payment to your creditors... It was ridiculous. Honestly though. Creditors don't want to work with people one on one either.. We went to them again and again trying to come up with a way to pay this off and they weren't willing to work and told us to go to these other type agencies..

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