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