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Debt Settlement USA / Took my money, offered no service

1 16430 N. Scottsdale Road, Suite 400Scottsdale, AZ, United States Review updated:
Contact information:
Phone: 480-556-9090

I would strongly advise anyone who is considering looking at a debt settlement program to avoid Debt Settlement USA . I cannot give you a strong enough warning about this company as well as other companies who claim to settle your debts in a set amount of time.

This is a total scam that will result in collections lawsuits as well as pain & embarassment for you.

Debt Settlement USA represented themselves as having relationships with many of the well known creditors and that their program was in fact legitimate and accepted as an alternative to bankruptcy. This is NOT the case.

Debt Settlement USA sends power of attorney letters to your creditors and that is the extent of their involvement until enough funds are built up in your account to settle with a creditor. They also tell you not to make payments to your creditors during this time. This is absolutely the WORST thing you can do.

In fact, I was told by one of my creditors that they will often move directly to a lawsuit when a debt settlement service is involved.

To date, they have NEVER contacted ANY of my creditors...

Having chose to go this route and with Debt Settlement USA was probably the worst thing I could have ever done.

I have just "fired" Debt Settlement USA" and am now dealing with two, possibly three collections lawsuits against me. I also had a process server knock at my door.

I have requested a refund from these people but that may never happen and may consider recuiting other "victims" of Debt Settlement USA" for a class action lawsuit.

Best of luck !

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Comments

Sh
  26th of Feb, 2009
Agree Disagree 0 Votes

I agree with you and wish to be involved in a class action lawsuit against Debt Settlement USA

Sheila from Bellingham, WA

Ge
  21st of May, 2009
Agree Disagree 0 Votes

If you live in Georgia and have used Debt Settlement USA, you may be entitled to bring a claim against the company in the form of a class action to recover all fees you paid to the company. To speak with an attorney about this issue, call 706-828-2063

Ra
  5th of Jun, 2009
Agree Disagree 0 Votes

After 2 debts had been settled and my financial obligation to Debt Settlement USA had been paid I had 1 debt yet to be settled. The negotiator was rude and sarcastic and I told him I didn't appreciate his attitude. He became belligerant at that point and told me that once the debt had been turned over to collections there was no alternative but to make arrangements to pay the debt in full. At a relative's urging, I contacted the debt collection agency and was informed that the debt could be settled at 75%. Two days later I received an angry phone call from the negotiator spewing vile accusations and verbal abuse. He accused me of "going behind his back" in calling the collection agency and when I told him they had agreed to a lesser amount than what he had told me he flatly denied telling me the full amount of the debt would only be accepted at this point and " hears what wants to hear." and "Oh? Since when did you become a negotiator?" At that point I could no longer tolerate the verbal abuse and asked to be referred to a different negotiator and he told me he'd speak to his manager but that "I assure you the people around here don't take kindly when you ask for a different negotiator." I am still shocked at the unprofessional, intimidating behavior of this company that I paid to work on my behalf. Don't use this company people out there !!!

De
  20th of Aug, 2009
Agree Disagree 0 Votes

I would have to agree with the complaint against this company. I was with Debt Settlement USA for a a number of months and had paid in around $2000 before I stopped paying them. They promised me that they would work with my creditors to a settlement of around 40% of what was owed which never happened. The initial employee from this company told me that they had good working relationships with all of the creditors and that they would work on my smallest debt first and then work to the largest. My negotiator also told me the same thing and then after a few months she had told me that she had just finished filing bankruptcy on all of her credit cards. All I can say is that after a few months of paying to this company my negotiator called me and told me that they had worked out a final agreement with the largest dollar creditor for a 10% reduction which is nowhere near the 60% range they talk about. The final straw came when a creditor did call and told both my wife and I that they had not written documentation or phone calls telling them that I was in talks with Debt Settlement USA. Could the collection agency or Debt Settlement USA be lying to me was too much to handle at the time so I agreed to work with the collection agency towards a settlement and cancel working with Debt Settlement USA. Before canceling I had asked Debt Settlement USA documentation showing that they had talked to creditors and nothing happened.

Gl
  21st of Aug, 2009
Agree Disagree 0 Votes

you are lying. After a few month of paying in you would not of had the money to make a settlement with your largest creditor, and your negotiator would not have been working on that one.

De
  16th of Jul, 2010
Agree Disagree 0 Votes

I too am a victim of debt settlement usa. It wasn't until I was served a summons from one of my creditors to appear in court that I realized they did nothing for me. I also got a settlement offer from another creditor and asked if it was from DSUSA and they advised no, that they called and called and got no return phone call. I was promised my debt to go down more than half. They are not licensed in TN, however asked me to provide my mother's address in FL where they are licensed and "worked" with me regardless. All they did was take my money. They have destroyed my credit score and now I have summary judgements against me and am having to pay attorneys. I say STAY AWAY from any of these scam artists.

De
  16th of Jul, 2010
Agree Disagree 0 Votes

I do not live in GA, I live in TN. Debt Settlement isn't licensed in TN, however did business with me anyway. Is there a class action suit against them nationwide?

Ed
  1st of Sep, 2010
Agree Disagree 0 Votes

STAY AWAY FROM UP-FRONT FEE SETTLEMENT COMPANIES: When searching a debt relief company to work with always look at their fee structure. If they charge anything up-front or charge monthly dues, it's better to stay away. Settlement companies should only charge a fee once a settlement has been finalized by the debt agency and the client's creditor. They should also charge minimal fees based on what they save their clients. www.personalcreditsolution.com operates with this fair fee structure and offers a full satisfaction guarantee to each of their clients. Remember, there are honest settlement companies out there...you just have to do your homework and see what you're really paying for their service. Contact Personal Credit Solution as they offer a free unbiased consultation to all their clients. They also inform clients of all the debt relief options out there, so that their clients are fully informed of their options. www.personalcreditsolution.com 1-888-727-4505

De
  28th of Sep, 2010
Agree Disagree 0 Votes

Based on your post, I thought you may be interested in this company. I used thir services last week and recovered $7200 in fee's that were stolen from me by my debt settlement company.

DebtSettlementRefund.com is a Pro-Consumer business, established to assist Consumers in recovering the exorbitant fees typically charged by debt settlement companies.

It's never too late to demand your money back from a debt settlement company. DebtSettlementRefund.com aggressively works with Consumers in all 50 states to recover 100% of your money.

Li
  5th of Oct, 2010
Agree Disagree +1 Votes

how can I get a debt settlement refund.. they have taken 2500$ roughly for there 'fees" and there is only just over 1000 $ in my act for pay outs.. they have settled nothing what so ever. Im out so much money, now my credit score which used to be 782 when I enrolled in december of 09..cant imagine what it is down to now is now, i dont even want to know. I feel like a fool because I was taken for such a ride!!! Im drowning and i have no life life line. What can I do? and suggestions

Pu
  7th of Feb, 2011
Agree Disagree 0 Votes

I used Debt Settlement USA to settle a couple credit cards because with my husband laid off we just couldn't afford the monthly payments and I was getting behind in the payments. I was told by their counselor that they would send letters to each of the companies to stop the calls to me and it would direct the calls to them. It did not stop the calls. The credit card companies told me they don't deal with debt settlement companies. I finally couldn't stand the calls anymore and decided to take money out of my retirement fund to settle with these two companies. When I called the counselor at Debt Settlement USA and told her I wanted to settle one of the debts she then told me they couldn't call the credit card company to arrange a settlement and that I would have to do that but she would coach me on what to say. I didn't need her help in doing this. I paid them over $300 a month for a year that I definatley couldn't afford for nothing. I contacted the companies and settled the debts myself. And then they do not tell you that the money the credit card company writes off is considered income that you have to claim on your taxes when you file and pay tax on it. If anyone starts a class action suit please include me.

An
  12th of Apr, 2011
Agree Disagree 0 Votes

I totally agree, I used Debt Settlement USA and at first they are very friendly, helpful and call you back but after you are fully enrolled in their program they ignore your emails, calls, etc. Also they know fully that certain credit card companies will NOT work with them, (including big name credit card companies) so they are taking your money fully knowing these companies with not negotiate with DSUSA. Its a scam. I wasted over 2, 000 dollars giving them my hard-earned, and much needed money and they did not help at all. I luckily resolved all my debt on my own, with help from my family and a loan, and got 2 cards down to 50% off my balance. If I would of stayed with DSUSA it would of been a matter of time before i also had legal issues with the credit companies, luckily i read all these reviews on this site and got out of it in time before even more damage was done to my credit, and before i just handed them over even more money for doing absolutely nothing. On several occasions, after i was in the program for about 8 months, i tried to email and call them with questions, all were ignored, they never got back to me, even when i "fired" them and quit the program there were no calls/emails to see why i quit or try and make amends for any of it. They are just taking peoples money and pocketing it... I only wish i had read these complaints before i enrolled in the program.

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